With the start of June, there are many changes related to personal finance, credit cards, income tax, stock market, etc. Firstly, June will see the much-awaited results of the 2024 Lok Sabha elections being announced on June 4. The market will be keenly watching the election results and their reaction may impact investment portfolios. For instance, after the 2019 elections, Nifty surged from 11,100 to 11,900 within 10 days of the announcement of the results. With experienced traders looking to make profits with short option contracts, retail investors should tread cautiously.
There are a few other changes as well, which we'll list below:
1. Nomination of Investment Trust
Sebi has fixed June 30, 2024 as the last date for current retail mutual fund investors to nominate or withdraw their nominations, failing which their accounts will be frozen and no withdrawals will be possible. This is mandatory for folios created before October 1, 2022. Transactions like redemptions, systematic withdrawal plans, switches, systematic transfer plans etc. will not be allowed in the folios if the details are not registered within the specified deadline starting from July 1, 2024.
2. June 15th: First prepaid tax installment
June 15 is the deadline for paying the first advance tax. This applies if an individual's annual income tax liability exceeds Rs 10,000. Advance tax is levied on various sources of income, but senior citizens with no business income are exempt. Advance tax is paid up front, rather than in a lump sum at the end of the year. It is a tax that is paid in instalments as income is earned and as per the due date of the tax office.
Taxpayers are required to make four annual estimated tax payments.
> 15% advance tax is due by June 15th of the financial year.
> 45 percent of the prepaid tax (minus any tax already paid) is due by September 15th.
> 75 percent of the prepaid tax (minus any tax already paid) must be paid by December 15th.
> 100 percent of the prepaid tax (minus any tax already paid) is due by March 15th.
If you forget or delay in paying advance tax, late interest will be levied on the tax amount under Section 234C at the rate of 1 per cent per month or part of a month.
3. Increased fines for traffic violations
The Centre has increased the fines for violations of the Motor Vehicle Act. While the fine for speeding has remained unchanged, a fine of Rs 25,000 will be imposed for driving by a minor along with cancellation of registration. Currently, the fine ranges from Rs 1,000 to Rs 2,000 for an adult driving a vehicle without a valid licence. From June 1, individuals can get tested at government-authorised private centres.
4. Changing your credit card
BOBCARD One by Bank of Baroda Interest rates and late payment charges for affiliated cards will be increased from June 26, 2024. The new interest rates will be 3.75% per month, up from 3.49%. Late payment charges will also be increased, with a minimum charge of Rs 1,000.
From June 21st Swiggy HDFC Bank Credit Card The cashback will show up on your credit card statement instead of on the Swiggy Money app, and this change will directly reduce your next month's balance.
for IDFC First Bank Credit CardIf your utility bill payments in a billing cycle exceed INR 20,000, a surcharge of 1% plus GST will be applicable, with the exception that FIRST Private, LIC Classic and LIC Select credit cards are not subject to this surcharge.
Yes Bank has adjusted credit limits to waive annual fees, initiation fees and additional charges for all credit cards except for “private” card types.
From June 2024, SBI Card We will stop rewarding points for government-related transactions on certain credit cards. This will affect popular credit cards such as AURUM and SBI Card ELITE.
Users of Amazon Pay ICICI Credit Card From June 18th, you will no longer be able to earn points on rent payments. However, you will still receive the 1% fuel surcharge discount without affecting any other benefits.
5. HDFC Bank UPI SMS Alerts
Starting June 25, HDFC Bank will send SMS alerts for Unified Payments Interface (UPI) transactions exceeding Rs 100 for withdrawals and Rs 500 for deposits. Transaction details will continue to be provided through email updates.
6. Update your Aadhaar details
Aadhaar cardholders can update their information online free of charge till June 14, 2024. Offline updates at enrolment centres will incur a fee of Rs 50 per update. UIDAI said the free service will be limited to the MyAadhaar portal till the specified date.
7. Income Tax Return for the year 2023-24
Taxpayers need to start collecting documents for filing ITRS for FY 2024-25 or 2024. Taxpayers can file their ITR by July 31, 2024, while salaried individuals will have to wait till June 15, 2024 as they will receive Form 16 from their employers and banks by that date.
You can start verifying your financial documents like bank statements, capital gains statements, salary slips etc. from June onwards to avoid last minute scrambles and mistakes. Once you receive your Form 16, start the process early instead of waiting till July 31 to avoid issues due to portal glitches and congestion.
