As of next month, there will be a myriad of changes taking place across the banking sector. The State Bank of India has revised its charges and rules for cash withdrawals from its Automated Teller Machines (ATMs) and branches. Certain taxpayers may face Tax Deduction at Source (TDS) at higher rates from next month. From LPG cylinder prices to revised banking charges — here are the key changes that will come into effect from July 1.
1) SBI ATM Withdrawal Charges to be imposed: For all customers of SBI, excluding those who bear a zero-balance account, charges will be levied against cash 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. Upon exhausting those free withdrawals SBI will charge Rs 15 plus Goods and Services Tax (GST) for each withdrawal.
2) Hike in Cheque Book Usage Charges: Savings account holders with SBI will have limited free cheque leaf usage from July 1, 2021. According to the newly released and approved guidelines, an account holder can only use 10 cheque leaves in a financial year. Using more than the stipulated amount will attract a charge of Rs 40 plus GST for the next 10 leaves or Rs 75 plus GST for the subsequent 25 leaves. Using an Emergency Cheque Book will cost Rs 50 plus GST for 10 leaves. Having said this, there are no such cash penalties mentioned as of yet for senior citizens.
3) LPG Cylinder Price Changes to come: The price of liquefied petroleum gas (LPG) cylinders will be changing as the price is decided on the first of every month. There is yet to be any such announcements by any of the major providers but the change is expected nonetheless on July 1.
4) Higher TDS arriving on the Scene: As of July 1, the government is going to impose a higher tax deduction at source (TDS) rate for those who are yet to deposit their income tax returns (ITR) for the past two years. This change has even been made a part of the income tax rules by the Finance Act, 2021. As per the new rule, the change will be implemented towards taxpayers whose TDS deductions each year exceeds Rs 50,000. However, taxpayers will be allowed time till July 15 to file the TDS for the last quarter of the financial year 2020-21.
5) New IFSC Codes for Syndicate Bank: In light of the merger between Syndicate Bank and Canara Bank, account holders of the former will get new IFSC codes.