From July, several critical financial changes will come into effect, directly impacting individual taxpayers and bank customers.
These include a new Aadhaar verification rule for PAN applications, an extended deadline for filing income tax returns, and revised charges on credit cards and banking services by leading banks such as SBI, HDFC Bank, and ICICI Bank.
Starting July 1, individuals applying for a new PAN card will have to undergo mandatory Aadhaar verification.
This new rule, introduced by the Central Board of Direct Taxes (CBDT), aims to boost tax compliance and digitization. Until now, a valid ID and birth certificate have been sufficient to obtain a PAN card.
In a significant relief to taxpayers, the CBDT has also extended the deadline to file income tax returns for the assessment year 2025-26.
The new deadline is September 15, providing salaried individuals with 46 extra days beyond the original July 31 cutoff.
However, tax experts advise starting the process early to avoid last-minute technical issues on the income tax portal.
Meanwhile, SBI Card has announced that it will withdraw its complimentary air accident insurance for select premium credit cards, effective July 15.
Cards such as SBI Card ELITE, Miles ELITE, and Miles PRIME will no longer offer the Rs 1 crore cover.
The Rs 50 lakh insurance benefit on SBI Card PRIME and PULSE will also be discontinued.
SBI Card is also changing the way it calculates the Minimum Amount Due (MAD) on credit cards.
From July 15, the MAD will now include total GST, EMI amount, all fees and finance charges, 2 per cent of the outstanding balance, and any overlimit amount.
This represents a shift from the earlier method, which applied either 5 percent of certain charges or 100 percent of finance charges—whichever was higher—along with other fees.
HDFC Bank will also implement new charges from July 1 on specific credit card transactions.
A 1% fee will apply to rental payments, gaming spends exceeding Rs 10,000 per month, and utility bill payments exceeding Rs 50,000.
Wallet reloads above Rs 10,000 will also incur a 1 percent fee. Each of these charges will be capped at Rs 4,999 per transaction.
On a positive note, customers will now earn reward points for insurance payments, up to a monthly limit of 10,000 points.
ICICI Bank has announced a wide range of changes to its service charges, effective from July 1.
ATM usage charges have been revised: customers will continue to receive five free transactions per month at ICICI Bank ATMs, after which a charge of Rs 23 per transaction will be applicable.
At non-ICICI Bank ATMs, users in metro cities will receive three free transactions per month, while those in non-metro cities will receive five.
Additionally, a charge of Rs 23 per financial transaction and Rs 8.50 for non-financial transactions will apply.
International ATM usage will cost more. ICICI Bank will charge Rs 125 per withdrawal, a 3.5 per cent currency conversion fee, and Rs 25 for non-financial transactions.
IMPS (Immediate Payment Service) transfer fees will now vary from Rs 2.5 to Rs 15, depending on the amount transferred.
The bank has also revised its cash transaction rules. Only three free cash transactions will be allowed at branches or cash recycler machines (CRMs) each month.
After that, a fee of Rs 150 per transaction will be charged. Depositing more than Rs 1 lakh in a month will attract a cost of Rs 150 or Rs 3.50 per Rs 1,000 — whichever is higher.
For third-party cash deposits or withdrawals, the limit remains Rs 25,000 per transaction.
–IANS
