June is set to be a month of significant financial changes that will impact individuals across various fronts, from personal finance and income taxes to credit cards and the stock market.
The month kicks off with the highly anticipated results of the 2024 Lok Sabha elections, which will be announced on June 4. These results are expected to considerably impact the markets, much like the aftermath of the 2019 elections when the Nifty surged from 11,100 to 11,900 within ten days.
Investors should brace for potential market volatility as seasoned traders are likely to capitalize on short options contracts. Retail investors are advised to proceed with caution during this period.
Another significant deadline is June 30, the last date for existing individual mutual fund investors to either nominate or decline the nomination. SEBI has made this mandatory for all folios created before October 1, 2022.
Failure to comply will result in the freezing of accounts for withdrawals starting July 1. This means transactions such as redemptions, systematic withdrawal plans, switches, and systematic transfer plans will be halted unless the nomination details are updated within the specified deadline.
For taxpayers, June 15 marks the due date for the first advance tax installment. Individuals whose annual income tax liability exceeds Rs 10,000 are required to pay this tax in advance. Senior citizens without business income are exempt from this requirement.
The advance tax is divided into four installments: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15. Delaying or missing these payments will incur a penal interest of 1% per month or part thereof under section 234C.
The Center has also increased fines for various Motor Vehicle Act violations. From June 1, minors caught driving will face a hefty fine of Rs 25,000 along with the cancellation of the vehicle’s registration. Adults driving without a valid license will now face fines ranging from Rs 1,000 to Rs 2,000. Additionally, individuals can now test at private centers authorized by the government.
Credit card users will notice several changes starting this month. Bank of Baroda’s BOBCARD One will see increased interest rates and late payment fees from June 26, with the interest rate rising to 3.75% per month. The Swiggy HDFC Bank Credit Card will shift its cashback feature to appear directly on credit card statements rather than on the Swiggy app from June 21.
IDFC First Bank credit cards will impose a 1% surcharge plus GST on utility bill payments exceeding Rs 20,000 in a billing cycle. YES Bank has adjusted spending limits for waiving fees on most credit cards. SBI Card will stop awarding reward points for government-related transactions on certain cards. Amazon Pay ICICI Credit Card users will no longer earn reward points on rent payments starting June 18.
HDFC Bank will introduce SMS alerts for UPI transactions over Rs 100 for outgoing funds and Rs 500 for incoming funds starting June 25. Email updates will continue to provide detailed transaction information.
Aadhaar cardholders can update their information online for free until June 14. Offline updates will incur a Rs 50 fee per update. This free service is exclusive to the MyAadhaar portal until the specified date.
The deadline for filing income tax returns for FY 2023-24 is July 31. Salaried individuals will receive their Form 16 by June 15, enabling them to start filing early. It’s advisable to begin reviewing financial documents like bank statements, capital gains statements, and salary slips in June to avoid last-minute rushes and errors.
