June 16, 2024

KT Business

The Business Servicess On for You

Money matters: 7 big financial changes to happen in June. Check details

4 min read

The month of June has started and there are a number of changes related to personal finance, credit cards, income taxes, stock market, and others. To start with, June will see the highly awaited Lok Sabha elections 2024 results that will be announced on June 4. The markets will keenly observe the election results, with any response likely affecting your investment portfolios. Like, after the 2019 elections, the Nifty surged from 11,100 to 11,900 within 10 days of the results. Retail investors should proceed cautiously now as seasoned traders are poised to capitalise on short options contracts. 

Other than this, there are several changes. Here’s the list:

1. Nomination for mutual funds

Sebi has established June 30, 2024, as the final date for current individual mutual fund investors to nominate or decline the nomination. Failure to do so will result in their accounts being frozen for withdrawals. This is mandatory for folios created before October 1, 2022. Transactions such as redemptions, systematic withdrawal plans, switches, and systematic transfer plans will not be allowed in folios if details are not registered within the specified deadlines starting from July 1, 2024.

2. June 15: First advance tax instalment

June 15 is the due date for the first advance tax installment. It applies when an individual’s income tax liability for the year surpasses Rs 10,000. Different income sources are liable for advance tax, yet senior citizens with no business income are exempt. Advance tax is paid in advance instead of a lump sum at year-end. It is the tax paid as income is earned, in instalments according to due dates from the tax department.

Taxpayers are required to pay their annual estimated tax in four installment:

> 15 per cent of the advance tax should be paid on or before June 15 of the financial year
> 45 per cent of the advance tax (less tax already paid) should be paid on or before September 15.
> 75 per cent of the advance tax (less tax already paid) should be paid on or before December 15.
> 100 per cent of the advance tax (less tax already paid) should be paid on or before March 15.

If you miss advance tax payments or delay them, there is penal interest on the taxes due, under section 234C, at the rate of 1 percent per month/part of the month.

3. Higher Fines For Traffic Violations

The Center increased fines for Motor Vehicle Act violations. Speeding fine stays, but minors driving face Rs 25,000 fine with registration cancellation. If adults drive a vehicle without a valid license now, fines range from Rs 1,000 to Rs 2,000. Starting June 1, individuals can test at private centers authorised by the government.

4. Credit card changes

Bank of Baroda’s BOBCARD One co-branded card will feature increased interest rates and late payment fees starting June 26, 2024. The new rate will be 3.75% per month, up from the previous 3.49%. Late payment charges have also risen, with a minimum fee of Rs 1,000.

From June 21, Swiggy HDFC Bank Credit Card cashback will show on your credit card statement, not on the Swiggy Money on the app. This change will lower your next month’s balance directly.

For IDFC First Bank credit card, a 1% surcharge plus GST will be applicable if utility bill payments exceed Rs 20,000 in a billing cycle. Exceptions are FIRST Private, LIC Classic, and LIC Select Credit Cards exempt from this surcharge.

YES Bank has adjusted the spending limits for waiving annual fees, joining fees, and additional charges on all credit cards, excluding the ‘private’ card type.

From June 2024, SBI Card will no longer provide reward points for government-related transactions on certain credit cards, affecting popular choices such as AURUM and SBI Card ELITE.

Users of the Amazon Pay ICICI Credit Card will no longer earn reward points on rent payments starting June 18. Nevertheless, the card will still provide a 1% fuel surcharge discount without affecting other rewards.

5. HDFC Bank’s UPI SMS Alerts

Starting June 25, HDFC Bank will send SMS alerts for Unified Payments Interface (UPI)  transactions over Rs 100 for outgoing funds and Rs 500 for incoming funds. Email updates will continue to provide transaction details.

6. Update Aadhaar details

Aadhaar cardholders can update their information online until June 14, 2024, for free. Offline updates at enrollment centers will incur a Rs 50 fee per update. UIDAI stated that the free service is exclusive to the MyAadhaar portal until the specified date.

7. Income tax returns for FY 2023-24

Taxpayers should start collecting their documents to file ITRS for assessment year 2024-25 or FY2024. While taxpayers have time till July 31, 2024, to file their ITRs, but salaried individuals would have to wait till June 15, 2024, as they would receive Form 16 from their employers and banks by June 15. 

You can start reviewing your financial documents like bank statements, capital gains statements, and salary slips in June. This will avoid last-minute rush and errors. Upon receiving Form 16, begin the process early instead of waiting until July 31 to avoid issues due to portal glitches or heavy traffic.

link

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © All rights reserved. | Newsphere by AF themes.