The month of August will bring a few changes that can have an impact on your savings and investments. Here are five changes that came into effect in August that you should be aware of.
Axis Bank Credit Card Rule Change
There is bad news if you are using a Flipkart Axis Bank credit card. The private sector bank has lowered some cashback and incentives points on Flipkart Axis Bank credit cards from August 12, 2023.
According to the Axis Bank website, from August 12, 2023, you will be qualified for 1.5% cash back when you use your credit card to pay for travel-related expenses on Flipkart. According to the bank, using Merchant Category Code (MCC) 9399 to pay for government services will not result in any refunds. Also, you won't be eligible for cashback on fuel purchases, gift card purchases made on Flipkart, Myntra, EMI transactions, etc.
Amrit Kalash - SBI
The last date to invest in SBI Amrit Kalash is August 15, 2023. According to the SBI website, this 400-day deposit offers a rate of 7.1% for regular customers and 7.6% for seniors. According to the SBI website, "Specified tenor scheme of '400 days' (Amrit Kalash) at an interest rate of 7.10% w.e.f April 12, 2023. Seniors Citizens are eligible to an interest rate of 7.60%". SBI's FD scheme also includes premature withdrawal and loan against deposit options.
INDIAN BANK IND SUPER 400 DAYS
As of March 6, 2023, a new special retail term deposit product called "IND SUPER 400 DAYS" has been launched. It offers a higher interest rate for investments that last for 400 days and range from Rs. 10000 to less than Rs 2 crore in the form of FD/MMD with callable options. The last date for investment under the scheme is 31 August 2023. Indian Bank will now offer interest rates of 7.25% to the general public, 7.75% to seniors and 8.00% to super senior citizens, under the scheme.
Indian Bank IND SUPREME 300 DAYS
According to the website, "IND SUPREME 300 DAYS RETAIL SPECIAL DEPOSIT PRODUCT" LAUNCHED FROM 01.07.2023 OFFERS ATTRACTIVE INVESTMENT INTEREST RATE FROM Rs 5,000 TO LESS THAN Rs 2 crore for 300 days in the form of FD/MMD with convertible options to recover. The scheme is valid until August 31, 2023.
Indian Bank will now offer interest rates of 7.05% for the general public, 7.55% for seniors, and 7.80% for seniors.
Penalties for belated income tax return
Penalties would apply to taxpayers who didn't file their Income Tax Declaration (ITR) by July 31, 2023. Those who file their Income Tax Registration after the required date will be subject to a fine of up to Rs 5,000 from August 1, 2023. If you fail to submit your ITR by the deadline, you have until December 31, 2023, to file late belated returns.
A penalty of Rs 5,000 must be paid under section 234F of the Income Tax Act, 1961 for submitting a return after the due date. The fine is only Rs 1,000 for taxpayers whose annual gross income is less than Rs 5 lakhs.
IDBI Bank Amrit Mahotsav FD for 375 Days and 444 Days
IDBI Bank introduced a special package of "375 Day Amrit Mahotsav FD" which offers a peak rate of 7.60% per annum. Valid till August 15, 2023. In addition, the existing 444-day "Amrit Mahotsav FD" under the call option offers a maximum rate of 7.65% p.a. Under a non-redeemable option, it offers a maximum rate of 7.75% per annum. The other new 375-day scheme is effective from July 14, 2023, and valid up to August 15, 2023.
Bank Holidays in August 2023
Banks will be closed for 14 days in August 2023, including the second and fourth Saturdays, Sundays, and other days. There are state-specific bank holidays, as well as others when all banks in the country are closed. On August 15, all banks in India will be closed in observance of Independence Day.
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