As August approaches, there are several changes that may directly affect your finances, including home loans, savings, and bank offers.
The Reserve Bank of India (RBI) has not altered the repo rate in April and June, but it remains to be seen if there will be any changes this time.
Here are the key changes to watch out for:
1. RBI’s Repo Rate Decision:
The Federal Reserve raised rates in July, the highest since 2001. With rising inflation, economists speculate that RBI might follow suit and increase the repo rate.
The third monetary policy meeting of RBI is scheduled for August 10. If the repo rate is raised, it could impact home loan and car loan EMIs, making borrowing more expensive.
2. Last Chance for Higher FD Interest Rates:
Due to the continuous increase in the repo rate since May 2022, banks have increased interest rates on Fixed Deposits (FDs).
However, special FD schemes like IDBI Bank Amrit Mahotsav and SBI Amrit Kalash will end on August 15. Senior citizens are currently receiving an interest rate of 7.60% under these schemes.
3. Verify Your ITR by August:
If you have filed your Income Tax Return (ITR), make sure to e-verify it within 30 days of filing.
You can validate it through Aadhaar, Bank Account, or Demat Account. Failing to verify on time may lead to penalties.
4. Penalty for Late Filing of ITR:
If you miss the July 31 deadline for filing your ITR, you will have to pay a fine of Rs 5,000 under Section 234F of the Income Tax Act.
Those with an annual income of Rs 5 lakh or less will face a penalty of Rs 1,000.
5. Reduction in Cashback Offers on Flipkart:
Flipkart’s cashback benefits available on Axis Bank Credit Card will be reduced from August 12.
Be aware of the changes in cashback offers to manage your expenses wisely.
Stay updated with these changes to make informed financial decisions and effectively manage your finances in August.