6 key financial changes in June 2024: Credit card rules, mutual fund nomination and more

Income Tax deadlines

Form 16: Employers typically provide employees with Form 16, a summary of their income and tax deductions for the previous fiscal year (2023–24), by June 15.

For Indian employees, Form 16 is a crucial document. It is issued by your employer as a Tax Deduction at Source (TDS) certificate, which you subsequently turn in to the Department of Income Taxation. This form displays the applicable TDS deductions along with your total earnings from the previous fiscal year (2023–24).

It also makes the process of preparing your income tax return easier by including all pertinent data regarding your income and deductions. You need to get a different Form 16 from every employer if you changed jobs or had a lot of employers in a given year. Apart from potential tax issues, this record can be helpful for many other purposes, such as loan applications, visa applications, and providing evidence of income for particular purposes.

Advance tax payment: By June 15, the first installment of advance tax must be paid. If your estimated tax liability for the year is more than ₹10,000, you must comply with this requirement. Cash flow management is aided by an advance tax because it spreads out income tax payments over the course of the year as opposed to requiring a large payment at the end. Three more payments are needed on September 15, December 15, and March 15th, after the June 15th installment. To prevent interest from accruing, you must pay at least a portion of your total tax liability with each installment. Taking your income and deductions into consideration is necessary to estimate your tax liability for the current fiscal year.

Update Aadhaar information

Holders of Aadhaar cards have until June 14, 2024, to make online updates to their Proof of Address (POA) and Proof of Identity (POI) documents. Beginning on June 14 of this year, any modifications made to Aadhaar data, whether made online or in person at an enrolment center, will incur a fee of ₹50 per update. As the only free upgrade source until the deadline, the Unique Identification Authority of India (UIDAI) is exclusively promoting online updates through the MyAadhaar portal.

Hefty fine for traffic rule violations

Infractions under the Motor Vehicle Act (MVA) have undergone substantial modifications in India. Although the government did not disclose the details of individual offenses, it did raise penalties for myriad infractions. Notably, in an attempt to stop underage driving, minors who are found to be driving now face a severe punishment of ₹25,000 in addition to having their vehicle’s registration revoked. Adult drivers found operating a vehicle without a valid license may be fined between Rs. 1,000 and Rs. 2,000.

Starting on June 1, people can take their driving license exams at private locations that have been approved by the government. This method may increase convenience and accessibility for obtaining a license. It looks like these modifications are intended to increase traffic safety and possibly speed up the driver licensing procedure.

Mutual fund nomination

June 30, 2024, is the last day for current individual mutual fund investors to designate a beneficiary or withdraw their nomination. Mutual fund accounts that don’t meet this deadline will have their withdrawals frozen beginning July 1, 2024. All individual mutual fund folios created before October 1, 2022, are covered by this regulation; folios created after that date may be subject to different deadlines or specifications. Transactions like swaps, redemptions, and systematic transfer plans (STPs) are prohibited on frozen accounts.

It is recommended that investors use online portals or phone their mutual fund provider to verify the status of their nomination. Investors should name a beneficiary to receive the mutual fund units in the event of their death, if they haven’t already. It is best to discuss this option with a financial advisor to fully understand the implications, as some investors may choose in rare circumstances to completely opt out of nomination.

Credit card changes

The interest rate on past-due BOBCARD One co-branded card dues will rise from 3.49% to 3.75% per month as of June 26, 2024. Additionally, the minimum late payment fee will rise to ₹1,000 as of today. If you have a balance on your BOBCARD One co-branded card, these changes could greatly affect your finances.

The Swiggy app’s Swiggy Money feature previously represented cashback from the Swiggy HDFC Bank Credit Card. This reward will appear directly on your credit card statement as of June 21, 2024. Due to this modification, the cashback amount will no longer be received as in-app money (Swiggy Money) but will instead be deducted from your credit card balance. This can therefore assist you in lowering your minimum credit card payment for the upcoming month, thereby reducing your credit card debt and enhancing your money management.

Important details regarding the payment of utility bills for IDFC First Bank credit cards: You will be charged an additional 1% (plus GST) if you pay more than ₹20,000 in utility bills in a single billing cycle. LIC Classic, LIC Select, and FIRST Private credit card holders are exempt from this levy and will continue to receive no premium on their utility bills.

You will be assessed an extra 1% + GST on the amount over ₹20,000 if you regularly use your IDFC First Bank credit card to pay more than ₹20,000 in utility bills each month. It might be more economical for customers who regularly pay large utility bills to investigate surcharge-free alternative payment methods or to use cards like FIRST Private that are exempt from this penalty.

For purchases on certain credit cards, including well-known models like SBI Card AURUM and SBI Card ELITE, that are categorized as “Government Related,’ SBI Card has stopped awarding reward points. Although the precise cause of this change has not been made public, it may have to do with the government’s decision to reduce the cost of processing transactions or with an attempt to simplify the rewards program.

Regular purchases made with these cards will continue to earn reward points; however, government transactions will not. Check for updates on the “Reward Points Programme” on the SBI Card website to obtain a comprehensive list of affected cards along with any exclusions. If you value accumulating reward points for government purchases, look into credit cards from other issuers that still offer rewards for such transactions.

Customers of the Amazon Pay ICICI Credit Card will no longer receive reward points for using the card to pay for rent as of June 18, 2024. The 1% reduction in gas surcharges will still be in effect, though. Other card incentive programs, like cashback on Amazon purchases, are anticipated to stay the same unless there are any new announcements.

HDFC Bank’s UPI SMS alerts

The HDFC Bank will no longer send low-value UPI transaction SMS alerts. SMS warnings will no longer be generated for transactions of ₹100 or less and ₹500 or less. Email notifications will still be sent out for every UPI transaction, no matter how much is transferred.

For a complete transaction history, check your email or mobile banking app because SMS notifications won’t be sent for smaller UPI transactions. There’s a slight chance of missing a fraudulent transaction if you only rely on email warnings, even though it’s less likely for smaller amounts.

These are some of the key financial changes that took place in June 2024. Staying informed about such updates is crucial, especially when they can affect your personal finances.

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Published: 07 Jun 2024, 09:57 AM IST