8 Key Financial Updates You Must Know for July

Key changes or updates for July

  1. Automobile manufacturers to increase car pricing: To combat growing input costs, automobile manufacturers ranging from Hero Motocorp to Maruti will hike vehicle prices beginning in July this year.
  2. Post office small savings scheme: As a result of the low interest rate regime, the post office small savings scheme may experience a rate drop. Following state assembly elections last quarter, the central bank reversed a rate drop on small savings schemes. Small savings programmes have rates that are linked to the yield on 10-year government securities and are reviewed quarterly.
  3. IDBI Bank revises its rates for lockers, savings accounts, and cheque leaflets: After the free limit of 20, the bank will be required to pay Rs. 5 each cheque. However, if you keep an IDBI ‘Sabka Saving Account,’ this fee is waived.
  4. Corporation Bank and Andhra Bank customers to receive new cheque books: Corporation Bank and Andhra Bank have been amalgamated into Union Bank, and as a result, the two institutions’ customers have been asked to receive a new check book with enhanced security features.
  5. LPG cylinder price change: LPG or cooking gas cylinder prices are also changed monthly, and it is possible that the LPG cylinder price will vary. LPG is derived from natural gas and crude oil.
  6. Syndicate Bank’s IFSC number and cheque book will become invalid on July 1. Similarly, Syndicate Bank customers have been advised to update their IFSC codes by June 30. “Dear customer, replace e-syndicate cheque book and cheques issued to the third party as validity for presentation expires on 30.06.2021,” Canara Bank said.
  7. SBI cash withdrawal and cheque booklet changes: Effective July 1, 2021, the country’s largest lender declared that customers will be limited to four withdrawals per month from ATMs and branches. Apart from the complimentary transaction, the lender would charge Rs. 15 + GST on each transaction. Additionally, a restriction will be imposed on cheque books, i.e. consumers can now use up to ten cheque leaflets without incurring additional expenses. There will be a price of Rs. 40 plus GST for each additional ten cheque leaflets, and Rs. 75 plus GST for each additional twenty-five leaflets. However, there have been no similar taxes declared for senior persons.
  8. Effective July 1, TDS regulations will change: Taxpayers will be verified, and those who have not submitted an ITR in the last two years will be assessed a higher TDS. The law applies to taxpayers whose TDS deduction exceeds the Rs. 50000 level. The rule is included in the Finance Act, 2021, as a new inclusion.

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Krishna Rath is a SEBI Registered Investment Adviser, and since 2015 has been educating netizens on investments and insurance. Krishna is a fee only SEBI RIA and is Odisha's first SEBI RIA. With background in IT, Krishna is changing the advisory space with new innovations in AdvisoryTech.

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