3 money rules that will change from August
NACH system available all seven days, self-assessment tax dues above threshold to attract penalty and various bank related transaction charges increase
Come August and some key money rules are changing which may impact the way you handle personal finances. Here we take a quick look at what’s changing.
NACH system through the week
From August 1, your salary credit into bank account, auto-debit related to mutual fund SIPs, home/car/personal loans EMI payments, bill payments such as telephone bills, gas payments, electricity bills will take place even on bank holidays. All this thanks to the National Automated Clearing House (NACH) system being made available on all days, including Sundays and bank holidays, effective from August 1, 2021.
Currently, auto-debit instructions given by the bank account holder does not get processed on days the bank is closed such as Sundays, bank holidays and gazetted holidays. Since most companies use NACH for salary credits, these also do not happen on bank holidays.
Penalty on self-assessment tax dues
If an individual taxpayer’s tax dues, after subtracting TDS and advance tax dues, exceeds Rs 1 lakh for FY 2020-21, then the payment must be made on or before July 31, 2021. The penal interest will be 1 per cent per month from August 1, 2021, till the date of filing of Income Tax Return (ITR). If senior citizens, who are not required to pay advance tax as per income tax laws, pay any taxes before July 31, 2021, then the taxes paid will be treated as advance tax. Plus, if due to this the final tax liability goes below Rs 1 lakh, then penal interest will not be levied.
However, do note that no such relief has not been provided for individuals aged below 60 years. Therefore, they need to pay all their tax dues if it exceeds Rs 1 lakh to avoid penal interest from August 1.
ATM cash withdrawals, bank transactions to cost more
The interchange fees structure for transactions at ATMs has been increased from ₹15 to ₹17 with effect from August 1, as announced by the RBI. The interchange fees has been hiked after nearly a decade. For non-financial transactions, the fees has been increased from ₹5 to ₹6. The interchange fees is applicable on transactions where a user of a bank, which issued an ATM card to her/him, uses it at the machine of another bank. This change is excpected to be transferred to customers using their ATM cards at various outlets.
Besides, ICICI Bank has revised limits of cash transactions, ATM interchange and cheque book charges for its domestic savings account holders from August 1. The revision of charges will be applicable for all the cash transactions – deposit and withdrawal. Additionally, the India Post Payments Bank (IPPB) has announced customers who use its doorstep services will now have to pay additional charges. The IPPB has said that it will start charging ₹20 (plus GST) for each request for doorstep service. This will be applicable from August 1.
Currently, there is no charge on doorstep banking offered by IPPB. Note that there won’t be any limit on the number of transactions when an IPPB personnel visits a customer’s home for doorstep service.