The alterations that will go into effect on July 1 include changes in rules that govern the filing of the income tax returns, use and fees related to credit cards, last minute bookings i.e. Tatkal train ticket bookings, and even the requirement that an Aadhaar card be compulsory in issuing a new PAN, are all of them going into effect on July 1.
These will be affecting individual tax payers and consumers of banks such as HDFC, SBI and ICICI.
New PAN Requires Aadhaar
Central Direct Taxes Board since Tuesday has set Aadhaar verification as a compulsory requirement when a person is applying to get a Pan card. Current PAN card holders have to connect their Aadhaar numbers before December 31.
Currently a birth certificate and any valid government issued identity e.g. driving license is sufficient to apply a new PAN card.
Failure to observe this rule can result to deactivation of existing PAN.
Tatkal Train TIcket Bookings
Tatkal tickets will too require Aadhaar confirmation.
Also as of July 15, ticketing, both online and on site will require two-factor authentication, including the provision of a one-time password that will be sent to the registered mobile phone.
In the meantime, an increment in the ticket charges by a tiny margin can also be anticipated by the Railways. This could vary between 1 paisa/km in case of non-AC coaches to two paise in case of AC coaches.
Deadline to file ITR
In the distinction, CBDT has further stretched out the deadline of filing the ITR, or Income Tax Returns, deadline of July 31 to September 15. This provides the salaried people with extra 46 days to submit filings.
But people whose papers are already prepared may cling to the earlier date and hence, can prevent the probable hitch at the web site and the common ills that tend to manifest when the deadline is nearing and people out there run to do ITR filing.
Changes in Credit Cards
SBI is doing away with its air accident cover on insuring air travel with some of its premium cards like SBI Elite, Miles Elite and Miles Prime by making air purchase. It is also expected that the bank will have a new calculation of minimum amount due or MAD (for monthly bills) in the case of the public sector bank.
HDFC or ICICI Bank on the other hand will be also revising fees on certain transactions.
In the case of HDFC, a fee of one per cent, which is to be capped at Rs 4,999 per transaction will be charged against you should you want to use your card in paying your rent or making transactions above Rs 10,000 on online skill-based games.
The abovementioned fee will also apply to the payment of utility bills, which costs more than Rs 50,000 every month and can be paid by a HDFC card. Exemption here is made on insurance dealings.
Lastly, any amount above Rs 10,000 that is loaded into an e-wallet by using the card will attract a charge of one per cent of the amount that is loaded but in no case will exceed the amount of Rs 4,999.
The changes in ICICI Bank will involve the revision of service charges such as the use of the ATM.
At the ICICI Bank ATMs the first five are free. Thereafter you will be asked to pay Rs 23 every time you will have to withdraw money. The zero-cost aspect of non-financial transactions will still be in existence.
When the ICICI Bank customers make use of non bank ATM, the free transactions will be restricted as three in Metro cities and five in smaller cities and towns. In addition to this you have to pay Rs 23 and Rs 8.5 per transaction respectively.
In case of a transaction made in international ATMs, the bank will levy Rs 125 per cash withdrawal, Rs 25 per non-financial transaction and a 3.5 percent currency exchange surcharge.
Online transfer charges i.e. through IMPS have been adjusted sharply with Rs 2.5 now to Rs 15 being charged depending on the quantity transferred.
Also three free cash transactions monthly in CRMs or cash recycler machines after which the customer will have to pay 150 dollars per transaction will be given.
All cash deposits more than 1 lakh/month will attract a fee of 150 per month or 3.50 per 1000 (whichever is higher). The third-party limit set on cash deposits will be Rs 25,000 per transaction.
New Calculation of Minimum Amount Due (MAD) of SBI Card
SBI card has altered the computation of minimum amount due on credit card (MAD).
Effective 15 July, minimum amount due (MAD) will be calculated as: 100 per cent of GST + 100 per cent amount of EMI + 100 per cent of fees/charges + 100 per cent of finance charges + overlimit amount (if any) + 2 per cent of balance outstanding.
Order of payment settlement will be as follows: payment received against outstanding of Cardholder will be applied against 100 percent of GST, 100 percent of EMI amount, 100 percent of fees/charges, 100 percent of finance charges, balance transfer, retail spends and cash advance in that order.
Individuals who can pay the minimum amount of money monthly will be particularly hit by this change. Just MAD You need to remember that merely making the payments on interest keeps the interest flowing and the total amount that is paid may multiply significantly.
Increase in HDFC Bank charges in credit card
HDFC Bank will start imposing extra charge on certain of its transactions, beginning July 1:
Gaming cost which more than Rs 10,000: 1 percent charge
Starting amount of utility bills of over Rs 50,000 (excluding insurance): 1% fee
Loading beyond Rs 10,000 in wallet: 1 percent charge, upto Rs 4,999
In case you use credit card to make some expenses, such as rent, games or utility bills, then these extra charges will be directly made into your pocket.
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