From July, changes are set to take place across the banking sector. The government may bring certain taxpayers face-to-face with higher rates of Tax Deduction at Source (TDS) going forward. The State Bank of India (SBI) has introduced revised charges set to take place from next month that will increase charges for cash withdrawals from its Automated Teller Machines (ATMs) and branches. From charges levied on cheque book usage to SMS charges from Axis Bank and even changes in IFSC codes for Syndicate Bank – here are the host of changes that will make landfall on July 1.
1) TDS Rates to Change: The biggest change comes from the government that is going to impose a higher TDS for those who are yet to file their income tax returns (ITR) in the last two financial years. This new rule will come under the purview of the Finance Act, 2021 and it will also apply to taxpayers whose TDS deductions exceed Rs 50,000 per year. On the bright side, taxpayers will be given time to file their TDS for the last quarter of FY20-21. The deadline for this is July 15.
The new income tax portal will provide the facility to check the taxpayer’s standing by using their PAN card number. If the TDS has not been filed, the deductions will be double that of the existing TDS or at a 5% rate.
2) Withdrawal Charges from SBI ATMs and Branches: For all customers who hold a minimum balance account or a Basic Savings Bank Deposit (BSBD) account, charges will be levied for withdrawals from SBI’s ATMs as well as the branches. Account-holders will be eligible for four free cash withdrawals from the bank’s ATMs and branches. After the four free withdrawals, SBI will charge Rs 15 to Rs 75 plus Goods and Services Tax (GST) for each withdrawal. This is done for any additional value-added services.
3) Cheque Book Usage Charges: SBI customers with savings accounts will have to contend with limited free cheque-leaf usage from July 1. As per new SBI mandates, the account holders can only make use of the first 10 cheque leaves from next month. These leaves will be considered free for the entire financial year, however, the use of additional leaves will levy charges. For the subsequent 10 leaves account holders will be charged Rs 40 plus GST and for 25 leaves they will be charged Rs 75 plus GST. The use of an Emergency Cheque Book will levy a charge of Rs 50 plus GST for 10 leaves. Though these extensive rules are just around the corner, no such mandate has been issued as of yet for senior citizens.
4) Syndicate Bank’s New IFSC Codes to be Issued: The customers of Syndicate Bank will be required to get new IFSC codes for their accounts. This change comes due to the merger between Syndicate Bank and Canara Bank.
5) AXIS Bank Alerts Customers of Charges to Change: Axis Bank has hiked several charges for its account holders with a savings bank account. While earlier changes were put into effect from May, new changes are around the corner come July 1. The bank has increased its cash withdrawal charges from its ATMs beyond that of the previous free limit. It has also increased the minimum balance requirements for its savings accounts. Additionally, AXIS Bank has also reworked the SMS charges to customers due to regulations introduced by the telecom regulatory authority. Customers will be charged 25 paise for every SMS alert, excluding promotional texts or OTP messages.