7 crucial changes to come into effect from July 1: Check details here
From revised ATM withdrawal charges to new IFSC codes, the account holders of various banks will be affected by these changes from July 1. The LPG cylinder prices are also expected to be revised, and those not filing income tax returns will be subjected to a higher TDS.
From July 1, people will witness changes in banking services and other areas which will have a direct bearing on the lives of common people. Apart from banking services, these changes will also impact those who haven't filed their income tax returns.
The changes in banking services have been approved by Reserve Bank of India (RBI) and will also include free transactions that are carried out by users of banks at Automatic Teller Machines or ATMs.
Here is a list of changes which will come into effect from July 1:
- SBI revises charges for ATM cash withdrawals: The customers of State Bank of India (SBI) will have four free cash withdrawals from the bank's ATM as well as branches. The largest public lender in the country will charge ₹15 plus GST on each transaction after the free transactions.
- Increased cheque book usage charges: The savings bank holders of SBI will have limited free cheque leaf usage from July 1. The bank has released new guidelines according to which an account holder can only use 10 cheque leafs in a financial year. For using more, the bank has announced ₹40 plus GST (for subsequent 10 leafs) and ₹75 plus GST (for 25 leafs). However, no such charges have been announced for senior citizens.
- LPG cylinder prices to be changed: The prices of liquefied petroleum gas (LPG) cylinders is decided on the first day of every month. Though no such official announcement is made by the oil companies, it is widely expected that the prices will be revised on July 1. LPG is a non-renewable source of energy and is extracted from crude oil and natural gas.
- TDS for not filing income tax: From next month, the government has decided to impose a higher tax deducted at source (TDS) rate for those who have not deposited income tax returns (ITR) for the last two years. The rule will be applicable on taxpayers whose TDS deducted each year exceeds ₹50,000. This has been inserted in the income tax rules by Finance Act, 2021.
- IFSC code of Syndicate Bank to be changed: The account holders of Syndicate Bank will get new IFSC codes as the bank has merged with Canara Bank. The latter has appealed to all the account holders of Syndicate Bank to get the new IFSC codes so that transactions can be done smoothly.
- Account holders of two banks to get new cheque books: Andhra Bank and Corporation Bank have been amalgamated into Union Bank of India. The latter has asked the users of the two banks to get new cheque books with security features. Their existing cheque books will become invalid. Andhra Bank and Corporation Bank were amalgamated into Union Bank on April 1, 2020.
- Hero MotorCorp to increase prices of products: The company said last week that it will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from July 1. The price hike has been necessitated to partially offset the impact of continuous increase in commodity prices, said Hero MotorCorp.