As we step into June, several significant financial changes are on the horizon that could impact various aspects of your financial roadmap. From the Lok Sabha election results to deadlines for income tax returns and updates on credit card policies, it’s essential to stay informed to make educated financial decisions. Here are the key changes to watch for this month:
1) Stock Market Rally on June 4
The results of the Lok Sabha elections, set to be announced on June 4, are anticipated to have a significant impact on stock market performance. Brokerages predict a potential rally if the BJP-led NDA secures a third consecutive term, which could lead to a market-wide profit booking, albeit temporarily. “We recommend investors cut leverage and rotate portfolios toward defensive sectors. The risk-reward is skewed slightly toward a buy-on-dip strategy rather than going all in,” advises Jitendra Gohil, chief investment strategist at Kotak Alternate Asset Managers. Investors should prepare for volatility and monitor market trends closely following the election results.
2) June 15 Deadline for First Advance Tax Installment
For taxpayers, June 15 marks the deadline for depositing the first installment of advance tax. Taxpayers whose annual income tax liability exceeds ₹10,000 must make this payment, which includes various income sources such as capital gains and lottery winnings. It is essential to note that senior citizens without business income are exempt from advance tax. Failing to make this payment on time could result in penalties, so taxpayers should ensure their finances are in order ahead of the deadline.
3) June 30 Deadline for Mutual Fund Nominations
Capital markets regulator Sebi has established June 30, 2024, as the deadline for all existing individual mutual fund holders to either nominate a beneficiary or opt out of nomination. Failure to comply will result in the freezing of their accounts, prohibiting any withdrawals. This rule aims to safeguard investors’ interests and ensure that their investments are passed on to their chosen beneficiaries. Investors are encouraged to review their mutual fund accounts and ensure their nominations are up to date.
4) Income Tax Returns for FY2023-24
While the deadline for filing income tax returns for the financial year 2023-24 is July 31, many employees can expect to receive their ‘Form 16’ from employers by June 15. Form 16 serves as the TDS certificate issued by employers upon deducting Tax Deducted at Source (TDS). It provides essential information required for filing income tax returns and acts as a consolidated statement of earnings. Taxpayers should keep an eye out for this document, as it is crucial for ensuring accurate tax filings.
5) HDFC Bank to Stop SMS Alerts for Certain UPI Payments
Starting June 25, HDFC Bank will limit SMS notifications for Unified Payments Interface (UPI) transactions. Customers will only receive text messages for money sent over ₹100 and for money received over ₹500. While customers will still be able to track transaction updates via email, this change aims to streamline communications and reduce unnecessary alerts.
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6) Bank of Baroda’s One Co-branded Credit Card Revises Late Fee
Bank of Baroda will revise the interest rate on unpaid dues for its One co-branded credit card from 3.49% to 3.75% per month, effective June 23. This increase in the interest rate underscores the importance of timely payments and could impact cardholders’ financial planning. Customers are advised to review their payment strategies to avoid incurring higher interest charges.
7) Amazon Pay ICICI Bank Credit Card Benefits to Reduce
ICICI Bank has announced a reduction in benefits associated with the Amazon Pay credit card. Starting June 18, the bank will discontinue the 1% reward point offered on rent payments made via the card. Cardholders should consider this change when planning their spending and may want to explore alternative payment methods or credit card options that offer more favorable rewards for rent payments.
As June unfolds, these changes in financial rules and regulations will require careful attention from individuals and businesses alike. Staying informed will empower you to make informed decisions, manage your finances efficiently, and navigate the evolving landscape of personal finance effectively.
