With the new year comes new changes that will have an impact on our money. Here is a look at six changes that will come into effect from January 1, 2022.
1) Pay more from ATM transactions
Starting January 1, 2022, if you use up all of your free ATM transactions, you will have to pay a higher amount. The Reserve Bank of India (RBI) has permitted banks to increase charges for cash and non-cash ATM transactions above the free monthly acceptable limit beginning January 1, 2022.
According to an RBI notification dated June 10, 2021, bank customers who surpass the monthly limit of free transactions would have to pay Rs 21 instead of Rs 20 per transaction starting January 1, 2022. Customers will, however, continue to be entitled for five free transactions per month from their own bank ATMs (including both financial and non-financial transactions). They will also be able to make three free transactions from other bank ATMs in metro areas and five free transactions in non-metro areas.
2) New rules regarding bank lockers
The RBI has issued new rules regarding bank lockers which will come into effect on January 1.
Banks cannot disown liability for loss of locker contents due to theft or due to fraud by its employees, the Reserve Bank of India (RBI) in a notification issued on August 18, 2021. However, the bank’s liability for such loss has been put at 100 times the prevailing annual rent for the locker.
Furthermore, according to the central bank, a bank must properly warn locker customers that the bank is not responsible for insuring the contents of the locker. The RBI has also stated that banks cannot sell locker contents insurance to its locker customers, possibly to prevent coercive insurance sales.
3) Various GST related changed
You will have to pay more in the form of GST on various products and services from 2022. The Central Board of Indirect Taxes and Customs (CBIC) announced that the GST rate on clothes and footwear would be hiked from 5% to 12% with effect from January 1, 2022, based on the GST Council’s recommendations.
While the passenger transport services provided by auto rickshaw drivers through offline/ manual mode would continue to be exempt, such services when provided through any e-commerce platform would become taxable effective January 1, 2022, at 5 per cent rate.
4) EPF contributions might stop if you don’t do this
“If your UAN is not linked with the Aadhaar number, your employer/establishment will not be able to deposit your monthly contribution from 01.01.2022. Hence, you’re requested to link your Aadhaar with UAN on or before 31.12.2021 if it is not linked already,” stated the Employees’ Provident Fund Organisation (EPFO) on the Member Sewa Portal.
Due to the pandemic, the deadline to file an income tax return (ITR) for the fiscal year 2020-21 has been extended twice: first from the regular date of July 31, 2021, to September 30, 2021, and then to December 31, 2021. Until last year, the maximum penalty a taxpayer could face for missing the ITR filing date was Rs 10,000. From this year, if you file a belated ITR, i.e., on or after January 1, 2022, the penalty you will have to pay will be lower.
With effect from FY 2020-21 (AY 2021-22), the penalty amount has been reduced by half, i.e., a person filing belated ITR will have to pay a penalty of up to Rs 5,000. Further, if your income is below the taxable limit then you won’t even have to pay the penalty amount if you file your ITR after the deadline subject to certain exceptions.
The India Post Payments Bank (IPBB has announced that it has revised charges on cash withdrawals and deposits at branches with effect from January 1, 2022.The India Post Payments Bank is a subsidiary of Indian Post, which is controlled by the Postal Department.