News
Money is important: 7 big financial changes will happen in June. Check details
The month of June has already begun and there are a series of changes related to personal finances, credit cards, income tax, the stock market, among others. To begin with, in June we will see the much-awaited results of the 2024 Lok Sabha elections, which will be announced on June 4. Markets will be closely watching the election results, and any response will likely affect their investment portfolios. Like, after the 2019 elections, the Nifty rose from 11,100 to 11,900 within 10 days of the results. Retail investors should proceed with caution now, as experienced traders are prepared to capitalize on short options contracts.
Other than that, there are several changes. Here is the list:
1. Nomination to Mutual Funds
Sebi has set June 30, 2024 as the last date for existing individual mutual fund investors to nominate or decline appointment. Failure to do so will result in your accounts being frozen for withdrawals. This is mandatory for folios created before October 1, 2022. Transactions such as redemptions, systematic withdrawal plans, exchanges and systematic transfer plans will not be permitted on folios if details are not recorded within the specified deadlines from July 1 2024.
2. June 15: First advance tax installment
June 15th is the due date for the first advance tax installment. It applies when an individual’s income tax for the year exceeds Rs 10,000. Different sources of income are subject to advance tax, but seniors without business income are exempt. Advance tax is paid upfront rather than as a lump sum at the end of the year. It is the tax paid as income is earned, divided in installments according to the Federal Revenue’s due dates.
Taxpayers are required to pay annual estimated tax in four installments:
> 15 percent advance tax must be paid by June 15 of the financial year
> 45 percent of advance tax (minus tax already paid) must be paid by September 15th.
> 75 percent of advance tax (minus tax already paid) must be paid by December 15th.
> 100 percent of advance tax (minus tax already paid) must be paid by March 15th.
If you miss your advance payment of taxes or are late, there will be penal interest on the taxes due under section 234C at the rate of 1% per month/part of the month.
3. Higher fines for traffic violations
The Center has increased fines for violations of the Motor Vehicles Act. The fine for speeding remains, but minors who drive face a fine of R$25,000 and cancellation of registration. If adults drive a vehicle without a valid license now, the fines range from Rs 1,000 to Rs 2,000. From June 1, individuals will be able to get tested at government-authorized private centers.
4. Credit card changes
BOBCARD One from Bank of Baroda the co-branded card will have an increase in interest rates and late payment penalties from June 26, 2024. The new rate will be 3.75% per month, up from the previous 3.49%. Late payment fees have also increased, with a minimum fee of Rs 1,000.
From June 21st, Swiggy HDFC Bank Credit Card The refund will appear on your credit card statement, not in the Swiggy Money app. This change will directly reduce your next month’s balance.
For First Bank IDFC Credit Card, a surcharge of 1% plus GST will be applicable if utility bill payments exceed Rs 20,000 in a billing cycle. The exceptions are FIRST Private, LIC Classic and LIC Select credit cards that are exempt from this surcharge.
YES Bank adjusted spending limits to waive annual fees, membership 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 transactions on certain credit cards, affecting popular choices like AURUM and SBI Card ELITE.
Users of Amazon Pay ICICI Credit Card You will no longer earn reward points on rent payments from June 18th. However, the card will still offer a 1% discount on the fuel surcharge without affecting other rewards.
5. HDFC Bank UPI SMS Alerts
From June 25, HDFC Bank will send SMS alerts for Unified Payments Interface (UPI) transactions above Rs 100 for outgoing funds and Rs 500 for incoming funds. Email updates will continue to provide transaction details.
6. Update Aadhaar details
Aadhaar card holders can update their information online until June 14, 2024, free of charge. Offline updates at enrollment centers will incur a fee of Rs 50 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 for tax year 2024. While taxpayers have time till July 31, 2024 to file their ITRs, salaried employees would have to wait by June 15, 2024, as they would receive Form 16 from their employers and banks by June 15.
You can start reviewing your financial documents such as bank statements, capital gains statements and pay stubs in June. This will avoid rushes and last-minute mistakes. When you receive Form 16, start the process early rather than waiting until July 31 to avoid problems due to portal glitches or heavy traffic.