New Delhi: Beginning July 1, several key financial regulations will come into effect across India, impacting individual taxpayers, railway passengers, and customers of major banks including SBI, HDFC, and ICICI. These changes include mandatory Aadhaar linkage for specific services, an extension of the income tax return (ITR) deadline, and revised charges on credit card and banking services.
Aadhaar Mandatory for PAN and Railway Bookings
The Central Board of Direct Taxes (CBDT) has made Aadhaar authentication mandatory for applying for a new PAN card. Until now, alternate IDs such as a driving licence or birth certificate were accepted. Existing PAN cardholders must link their Aadhaar by December 31, failing which their PANs may be deactivated.
Similarly, Aadhaar verification will be compulsory for booking Tatkal railway tickets. The Indian Railways will also introduce a two-factor authentication system for online and counter ticket bookings starting July 15, involving an OTP sent to the registered mobile number. Additionally, minor fare increases for train tickets are expected.
Income Tax Return Filing Deadline Extended
In a move welcomed by taxpayers, CBDT has extended the deadline for filing ITRs from July 31 to September 15. This provides an additional 46 days for salaried individuals and others to complete their returns without penalties.
Revised Credit Card and Banking Charges
State Bank of India (SBI):
SBI will discontinue air accident insurance on select premium cards such as Elite, Miles Elite, and Miles Prime. The method of calculating the Minimum Amount Due (MAD) on credit card bills will also be revised.
HDFC Bank:
HDFC will impose a 1% transaction fee for credit card payments made towards house rent and online skill-based games exceeding ₹10,000. This fee, capped at ₹4,999, also applies to monthly utility bill payments over ₹50,000 and digital wallet top-ups above ₹10,000. Insurance payments will remain exempt.
ICICI Bank:
ICICI will revise ATM and service charges. At ICICI ATMs, the first five transactions are free; subsequent withdrawals will be charged at ₹23 each. At other bank ATMs, metro customers get three free transactions, and non-metro customers get five; after that, ₹23 for cash withdrawals and ₹8.5 for non-financial transactions will apply.
Internationally, ICICI will charge ₹125 for cash withdrawals and ₹25 for other transactions. A 3.5% foreign currency markup fee will also be levied. IMPS transfers will attract fees ranging from ₹2.5 to ₹15 based on the transfer amount. Customers using cash recycler machines will get three free monthly transactions; beyond that, ₹150 per use will be charged. Deposits above ₹1 lakh per month will incur ₹150 or ₹3.50 per ₹1,000 — whichever is higher.