New Delhi- Several significant financial changes are set to come into effect from July, impacting taxpayers, credit card holders, and bank customers across India.
One of the key updates is the introduction of mandatory Aadhaar verification for all new PAN card applications, starting July 1. The Central Board of Direct Taxes (CBDT) has implemented this rule to strengthen tax compliance and promote digitisation. Previously, applicants could obtain a PAN card with just a valid ID and birth certificate.
Additionally, in a welcome move for taxpayers, the CBDT has extended the deadline to file income tax returns (ITR) for the assessment year 2025-26. The new deadline is September 15, giving salaried individuals and taxpayers an extra 46 days beyond the original July 31 cut-off. However, experts advise filing early to avoid last-minute technical glitches.
Changes to Banking and Credit Card Charges
From July 15, SBI Card will discontinue complimentary air accident insurance on several premium credit cards. This includes the Rs 1 crore cover on SBI Card ELITE, Miles ELITE, and Miles PRIME, as well as the Rs 50 lakh insurance benefit on SBI Card PRIME and PULSE.
SBI Card is also modifying the calculation method for the Minimum Amount Due (MAD) on credit cards. The new MAD will include GST, EMIs, all fees and finance charges, 2% of the outstanding balance, and any over-limit amount. This replaces the older method, which calculated MAD based on a percentage of charges or 100% of finance fees—whichever was higher—along with other dues.
HDFC Bank will implement new charges on certain credit card transactions starting July 1:
- 1% fee on rental payments.
- 1% fee on gaming spends exceeding Rs 10,000 per month.
- 1% fee on utility bill payments above Rs 50,000.
- 1% fee on wallet reloads exceeding Rs 10,000.
Each of these charges will be capped at Rs 4,999 per transaction. However, customers will now earn reward points for insurance premium payments, capped at 10,000 points per month.
ICICI Bank has also announced revised service charges effective July 1:
- Five free ATM transactions per month at ICICI Bank ATMs; thereafter, Rs 23 per transaction.
- Three free ATM transactions per month at other ATMs in metro cities and five in non-metro locations; thereafter, Rs 23 per financial transaction and Rs 8.50 for non-financial transactions.
- International ATM withdrawals will cost Rs 125, with an additional 3.5% currency conversion fee and Rs 25 for non-financial transactions.
- IMPS transfer charges will range from Rs 2.50 to Rs 15, depending on the transaction amount.
For cash transactions, customers will be allowed three free deposits or withdrawals at ICICI Bank branches or cash recycler machines (CRMs) per month. After that, a fee of Rs 150 per transaction will apply. Cash deposits exceeding Rs 1 lakh in a month will attract a fee of Rs 150 or Rs 3.50 per Rs 1,000—whichever is higher. The limit for third-party cash deposits or withdrawals remains capped at Rs 25,000 per transaction.
WIth inputs from IANS