June 10, 2023
Money matters: 8 important personal finance changes you need to know this month – Times of India

Money matters: 8 important personal finance changes you need to know this month – Times of India

It’s the end of the year and there are a few money changes this month that are likely to impact your wealth. We decode each one for you:
1. Get ready to pay more for food, clothes, phones, TV, footwear
From eating out to electrical appliances, apparel, everything is going to get expensive because of an unprecedented raw material price hike. For example, international coffee prices are at 10-year high and production has been hit owing to excess rainfall in India, which is why the food product has become costlier. Similarly tomato prices are retailing at over Rs 60/kg and will remain higher for another month or so until the new harvest becomes available.
Even watching TV is set to get expensive as the country’s leading broadcasting networks Zee, Star, Sony and Viacom18 have excluded some channels from their bouquet, or the pack of channels. Because of this, people may have to spend up to 50% more to watch the same channels now. Broadcasters have hiked the prices due to the new tariff order (NTO) of the Telecom Regulatory Authority of India (TRAI).
Jio plans have also become expensive. Jio on Sunday announced a tariff hike on its unlimited prepaid plans, which went into effect from December 1. The telco, however, maintains it continues to provide the lowest tariffs despite the 20 per cent increase in tariffs. The move comes shortly after Airtel and Vodafone Idea or Vi also announced a tariff hike of up to 25 per cent in their prepaid plans. Jio will upgrade its Rs 75 plan to Rs 91 while Jio’s unlimited plan priced at Rs 149 which gives 24 days validity will be priced at Rs 179 now.
2. ITR filing deadline
The Central Board of Direct Taxation (CBDT) had extended the Income-Tax Return (ITR) filing deadline FY 2020-21 for individuals till 31 December 2021 because of the difficulties faced by taxpayers in the wake of the Covid-19 pandemic.This is the second time this financial year that the government has extended the ITR filing deadline for individuals whose accounts are not required to be audited. Earlier, due to the second wave, the ITR filing deadline was extended by two months from the usual deadline of July 31 to September 30, 2021.
3. EPF money will stop if you have not linked it with Aadhaar
If you are an employee in the corporate sector and have an account with the Employees Provident Fund Organisation (EPFO), you must link your account with your Aadhaar. The last date to link Aadhaar with UAN was November 30. “In partial modification of the Circular No. WSU/15(1)2019/ATR/529 dated 15.06.2021 under reference, it is informed that the date of completing the seeding and verification of Aadhaar with UAN, is hereby extended till 30.11.2021 and accordingly, the date in Para 1 of the referred Circular dated 15.06.2021 mentioned as 01.09.2021 may be read as 01.12.2021,” the EPFO said in a circular.
Also, withdrawals from your EPF account will be restricted until your UAN has been confirmed and linked to your Aadhaar number.
4. Processing fee to be charged on all EMI transactions via SBI credit card
The credit card company has said that beginning December 1 it will be charging Rs 99 plus applicable taxes for all EMI purchase transactions done using SBI credit card. The said charges will be applied on both retail outlet and online e-commerce transactions such as on Amazon and Flipkart. These charges are over and above the interest charges for converting the purchase into EMIs. Any transaction done before December 1, with the EMI booking occurring after December 1, will be exempted from this processing fee.
5. Term insurance premiums are set to rise
Pure protection term insurance premiums are set to rise in the range of 25-45 percent on the back of rising re-insurance rates in the global market. Several life insurance companies raised their premiums since the COVID-19 outbreak last year due to concerns over high mortality rates. The extent of the premium hike will vary from one insurer to another. Munich Re, the largest reinsurer for the Indian insurance market, has hike its rates for underwriting portfolios of pure protection plans by up to 40 per cent. How much of the reinsurance rate hike will be passed on by each insurer will depend on the quality of book, the claim ratio, etc.
6. PNB cuts interest rate on savings accounts
PNB has lowered the interest rate on savings account deposits by 10 basis points (bps) for account balances less than Rs 10 lakh and by 5 basis points (bps) for account balances of Rs 10 lakh and above, respectively, to 2.80 percent p.a. and 2.85 percent p.a. These interest rates apply to both domestic and NRI savings accounts.
7. HDFC and Bajaj Finance increase rates on fixed deposits
Two non-bank lenders have hiked the interest rates on their fixed deposits (FDs). The FDs of HDFC will offer up to 10 basis points more across tenures. For 36 months, HDFC now offers 6.1 percent and for 60 months it offers 6.5 percent. Senior Citizens continue to earn 25 basis points more than the card rates and investors making their fixed deposits online pocket 10 basis points extra. Earlier, HDFC was offering 6.05 percent and 6.4 percent on fixed deposits, respectively.
Bajaj Finance has increased the rate of interest by up to 30 basis points. It will pay 6.4 percent interest on its 24 months FD compared to 6.1 percent earlier and 6.8 percent on 36 months deposit compared to 6.5 percent earlier.
8. LPG cylinder price has been hiked on the very fast day of December
The oil marketing companies have announced an increase in the prices of LPG gas cylinders. LPG prices for commercial cylinders were on Wednesday increased by Rs 103.50. The respite is that there is no increase in domestic LPG cylinders by the petroleum companies. The price of a non-subsidized 14.2 kg domestic cylinder in Delhi will be Rs 899.50 per bottle, while the new rate of 5kg domestic cylinder stands at Rs 502.

Source: https://timesofindia.indiatimes.com/business/india-business/money-matters-8-important-personal-finance-changes-you-need-to-know-this-month/articleshow/88046820.cms

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