With the New Year 2022 kicking in, you might be thinking to revisit and work on personal financing to find out where you were lacking the whole year and how you have to work on them this new year. While analysing and planning for a better financial situation in 2022, you will have to be aware of the new changes which certainly will have an impact on your money. These rules/changes are going to be implemented by RBI or other respective institutions, likely from today i.e. 1 January 2022 i.e., which may affect your pockets.
Here are some key regulatory and functional changes that are likely to come into effect from 1 January 2022, which you may need to keep a note to avoid shockers.
1. New rules regarding Bank Lockers
Reserve Bank of India floated new rules regarding bank lockers via a notification dated 18 August 2021, which will come into effect from January 1, 2022. According to the guidelines in the case of any theft/ burglary/ robbery, dacoity, building collapse, or fire due to bank’s negligence, the bank has to take responsibility and will pay up to 100 times the annual rent to the customers.
“It is the responsibility of banks to take all steps for the safety and security of the premises in which the safe deposit vaults are housed. It has the responsibility to ensure that incidents like fire, theft/ burglary/ robbery, dacoity, building collapse do not occur in the bank’s premises due to its shortcomings, negligence, and by any act of omission/commission. As banks cannot claim that they bear no liability towards their customers for loss of contents of the locker, in instances where the loss of contents of the locker are due to incidents mentioned above or attributable to fraud committed by its employee(s), the banks’ liability shall be for an amount equivalent to one hundred times the prevailing annual rent of the safe deposit locker” as stated in the notification.
However, it is to be noted that the bank shall not be liable for any damage or loss of belonging of locker caused by natural calamities or Acts of God like earthquake, floods, lightning, and thunderstorm or any act that is attributable to the sole fault or negligence of the customer.
2. Higher ATM withdrawal charges
From January 1, 2022, ATM withdrawal beyond the permissible free transactions limit is going to pinch the customers’ pockets as RBI has allowed the banks to increase ATM charges by 5%. Customers are eligible for five free transactions every month from their own bank’s ATM and three and five free transactions from the metro and non-metro centres respectively. Beyond this limit, with effect from January 1, 2022, customers have to pay Rs 21 which was 20 until now.
RBI through a notification in June 2021 issued the guideline stating, “To compensate the banks for the higher interchange fee and given the general escalation in costs, they are allowed to increase the customer charges to ₹21 per transaction. This increase will be effective from January 1, 2022.”
Banks have already started sending SMS Communication to Customers:
Dear Customer, wef. 01.01.2022 beyond 5 free fin & non-fin transactions in *own Bank ATMs, charges will be Rs. 21+GST for Fin transaction – Read an SMS from a government-owned bank.
3. GST related changes
While starting the new year 2022 the Goods and Service Tax (GST) will also witness key changes.
- The Central Board of Indirect Taxes and Customs (CBIC) through its press release dated 18th November 2021 announced the increment in GST rates of apparel, textiles (Tow, Fibre, Fabric, Articles), and Footwears from 5% to 12% with effect from January 1., 2022. However, the GST Council recommended a stay on the Centre’s decision to increase the tax rate on cheaper textiles from 5 per cent to 12 per cent from January 1, said Union Finance Minister Nirmala Sitharaman at a press conference on Friday. The move came after states made a request for deferring the rate hike from 5% to 12%. The matter has been referred to a group of state ministers to suggest rate by February.
- Also, Online food delivery platforms like Zomato and Swiggy are now liable to collect and pay GST. The finance ministry has clarified that the customers who avail the services of these platforms will not be paying any new tax. The 5% GST would only be deposited through a different route to the government and customers would not be paying any new tax.
- The passenger transport services provided through e-commerce platforms would also become taxable at 5 % starting from January 1, 2022. However, transport services that are made available through offline or manual mode are exempted.
- With effect from Jan 1, 2022, CBIC has made Aadhaar authentication mandatory for claiming GST refund.
- The property of the GST evaders will be confiscated without notice, and GST officers have been allowed to visit premises without any prior show-cause notice.
4. Penalty on late filing of ITR
The due date of filing returns for the individuals who are not covered under audit for the financial year 2020-21 has been extended to 31st December 2021, due to the pandemic. Until 2021, the maximum penalty a taxpayer could face for missing the ITR filing date was Rs 10,000. From January 1, 2022, you can file a belated return till March 31, 2022. With that, the penalty amount for belated filing of returns has been reduced to Rs 5,000 which was Rs 10,000 till the previous year.
If your income is less than Rs 5 lakh, the penalty is restricted to Rs 1,000, if the income tax return (ITR) is filed after 31 December 2021 but before March 31, 2022. 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.
5. EPF Nomination and Linking with Aadhaar
If you are an EPF member then you must link your Aadhaar with Universal Account Number (UAN) till 31 December 2021, then only your EPF amount will be deposited.
The Employees’ Provident Fund Organisation (EPFO) posted on the Member Sewa Portal “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”.
Hence, it should be noted that your EPF account will be blocked until you have linked your Aadhaar and UAN has been confirmed. Also, PF account holders must add their nominee so that in case of untimely death, this fund can be easily available to the nominee on time.