As we enter the new month of July, several notable changes have come into effect, starting from today, July 1.
Let’s take a look at what has changed and what to expect throughout the month.
LPG and ATF Prices:
The prices for domestic LPG cylinders, commercial cylinders, and Aviation Turbine Fuel (ATF) have been revised.
This time, there have been no changes in the prices of domestic LPG and commercial cylinders.
In Delhi, the prices remain at Rs 1,103 for domestic LPG cylinders and Rs 1,773 for commercial cylinders.
However, the price of Jet Fuel (ATF) has increased to Rs 90,779.88 per kg in Delhi, compared to Rs 89,303.09 per kg in June.
Penalty for PAN-Aadhaar Linking:
From today onwards, higher penalties will be imposed for the non-linking of PAN and Aadhaar.
If you haven’t linked your PAN card with Aadhaar by the previous deadline of June 30, you may face a fine of up to Rs 10,000 as per Section 272B of the Income Tax Act.
Furthermore, failure to link PAN with Aadhaar may render your PAN card inactive, preventing you from conducting financial transactions.
Changes in Small Saving Schemes:
The government has raised the interest rates on certain savings schemes for the July-September quarter. These changes are effective from July 1.
Notably, the interest rate on five-year Recurring Deposit (RD) has increased by 0.3 percent, reaching 6.5 percent in the current financial year.
One-year Fixed Deposit (FD) interest rates in post offices have also increased by 0.1 percent to 6.9 percent.
Meanwhile, the interest rates for three-year and five-year term deposits remain at 7.0 percent and 7.5 percent, respectively.
Merger of HDFC and HDFC Bank:
The merger between HDFC Limited and HDFC Bank, a private sector bank, has been finalized and is effective from July 1.
Consequently, HDFC Limited will no longer exist as an independent entity, and its shares will be delisted on September 13.
Customers can expect minimal disruptions, as all accounts and loans will continue to operate as usual.
However, some minor changes may occur in services like Fixed Deposits (FD) and insurance, which will be communicated by the bank.
ITR Filing Deadline:
July 31 marks the deadline for filing income tax returns.
This time, taxpayers must choose between the old and new tax regimes before filing their returns.
The new tax regime has become automatic, but if you seek tax exemptions on investments, you must opt for the Old Tax Regime.
In contrast, the new tax regime exempts income up to Rs 7 lakh from taxation.
Relief on Credit Card Spending Abroad:
Changes in the Tax Collection at Source (TCS) system on payments under the Liberalized Remittance Scheme (LRS) and foreign travel-related packages, announced in this year’s budget, were initially scheduled to come into effect on July 1, 2023.
However, the implementation has been extended, and the changes will now be effective from October 1, 2023.
These changes include an increased TCS rate of 20% on credit card spends exceeding Rs 7 lakh abroad.
Go First Flight Services Resumption:
Go First, an airline that suspended its flight services on May 3, is expected to resume operations in July.
The Directorate General of Civil Aviation (DGCA) will conduct a special audit of Go First’s Delhi and Mumbai units from July 4 to 6 to assess the airline’s preparations for resuming flight