Key financial changes in August: Tax deadline, faster cashless insurance approvals and new credit card rules

Verify your income tax returns within 30 days

For individual taxpayers who filed their returns in July, online submission is not the final step in the process. You will have to verify the returns within 30 days of having filed them online. That is when the income tax department will take it up for processing. You can easily do this online through the I-T e-filing portal (www.incometax.gov.in) using your Aadhaar, pre-validated bank account, demat account and so on. It is best to complete this process along with ITR submission instead of taking a break for 30 days.

If you do not complete the process within 30 days, the date of verification will be treated as the date of filing returns. So, if you verify your returns after 30 days and the July 31 due date has passed by, it will be seen as return filing post the due date, and you might have to shell out late filing fees of Rs 5,000 (Rs 1,000 if income is less than Rs 5 lakh). "Where the return is uploaded but e-verification or ITR-V is submitted after 30 days of uploading, in such cases, the date of e-verification/ITR-V submission shall be treated as the date of furnishing the return of income and all consequences of late filing of return under the Act shall follow, as applicable," the ITR e-filing portal says.

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Cashless authorisation in one hour

From August 1, non-life insurance companies will have to convey their decision on granting cashless authorisation within one hour of having received the request through hospitals.

The Insurance Regulatory and Development Authority of India (IRDA), in a master circular on health insurance issued on May 29, 2024, had directed the companies to put in place the systems and procedures required to facilitate prompt approvals by July 31, 2024. This is part of the regulator's larger strategy to pave the way for 100 percent cashless authorisation. Insurers have been asked to ensure that.

SEBI’s proposal on new risky asset class for mutual funds

The Securities and Exchange Board of India (SEBI) on July 16 proposed a new asset class that provides investors with a regulated investment product featuring higher risk-taking capabilities and a higher ticket size, aimed at curbing the proliferation of unregistered and unauthorised investment products. SEBI will take comments or suggestions on the proposal product category till August 6.

HDFC Bank has revised terms on credit card portfolio

HDFC Bank has revised terms for its credit card portfolio effective August 1. These revised terms, in line with those of other banks, include a 1 percent fee on the transaction amount for using third-party payment apps (CRED, Paytm, Cheq, MobiKwik, and others) for rental and educational transactions. Further, the bank has introduced a 1 percent charge on utility transactions above Rs 50,000. However, this change is unlikely to impact the majority of consumer credit card users, as it’s uncommon for individuals to make such large utility bill payments in a single transaction.

The bank has introduced a rewards redemption fee of Rs 50. It has also hiked annual/renewal fees on two of its credit cards that have a tie-up with Indigo Airlines — 6E Rewards XL–IndiGo HDFC Bank Credit Card and 6E Rewards–IndiGo HDFC Bank Credit Card. And finally, it has revised its late payment fee structure as well on these two cards.

Tata Neu Infinity HDFC Bank credit card updates NeuCoin rewards

From August 1, Tata Neu Infinity HDFC Bank credit card users will earn 0.5 percent as NeuCoins on eligible UPI transactions. They will get an extra 1 percent back as NeuCoins if they use Tata Neu UPI ID for a transaction.

This means users will earn 0.5 percent back as NeuCoins for transactions done using UPI IDs of apps such as Google Pay, PhonePe, Cred, etc. Users stand to get an additional 1 percent back as NeuCoins if the transaction is done using the Tata Neu UPI ID. Users can create their Tata Neu UPI IDs through the Tata Neu app. The total NeuCoins earned on eligible UPI transactions will continue to be capped at 500 NeuCoins per month.

The change in the rewards programme will not affect the existing NeuCoin balance.

Spend smartly this festive season

In August, thanks to Independence Day and Raksha Bandhan, e-commerce websites, retail chains, and independent neighbourhood stores will roll out shopping offers. Make a budget and track your shopping expenses during the festival season.

A better way to shop is to redeem your rewards points. Prepare a list of gift items that you need to buy and, thus, avoid impulsive spending. Use cards from partner banks for additional discounts and cashbacks. Avoid shopping for things you may not use immediately, and zero-cost EMI schemes, as they are debt traps.