These important financial rules are set to change starting in June—directly impacting your pocket..
With the turn of the month, several key regulations governing our financial lives also change. The new month brings with it significant shifts in the way you handle financial transactions, earnings, savings, and expenses. Whether you are a salaried employee, a taxpayer, a stock market trader, or simply use UPI for your daily payments, this month holds particular significance for you. From increases in banking fees to deadlines for depositing advance tax, a host of new rules are now coming into effect. As an informed consumer, it is crucial to understand how these new changes will directly impact your personal budget.
**New Deadline for Advance Tax**
If you are a taxpayer, mark June 15th on your calendar. Taxpayers whose estimated tax liability exceeds ₹10,000 are required to deposit the first installment of their advance tax for the financial year 2026-27 by this date. It is mandatory to pay at least 15% of the total tax liability by this deadline. This marks the first instance where this advance installment will be deposited entirely under the purview of the new Income Tax Act, 2025, and the Income Tax Rules, 2026. Failure to make timely payments could result in an additional interest charge of 1% per month.
**Major Relief Under the Old Tax Regime**
Meanwhile, salaried individuals who have opted for the Old Tax Regime have received some good news. The tax exemption limit for hostel allowances has now been increased to ₹9,000 per month. Similarly, the education allowance for children has jumped from ₹100 to ₹3,000 per child per month. Additionally, major cities such as Bengaluru, Pune, Hyderabad, and Ahmedabad have now been added to the list of locations eligible for a 50% House Rent Allowance (HRA) exemption. This will provide significant tax benefits to employees residing in these cities.
**UPI Payments to Become More Secure**
Major changes have also taken place on the banking front. The National Payments Corporation of India (NPCI) has rolled out a new feature to enhance the security of UPI payments. Now, whenever you scan someone's QR code or send money by entering a mobile number, the recipient's verified name—as registered with their bank—will appear on the screen. This measure is expected to curb online fraud perpetrated through fake identities. Additionally, the EPFO is currently piloting a facility to enable instant withdrawal of PF funds via UPI, which will allow employees to receive their money significantly faster.
**Increased Costs for Credit Card Users**
On the other hand, costs are set to rise for frequent credit card users. Kotak Mahindra Bank has capped the reward points earned on expenses such as utility bills, fuel purchases, and rent payments. Now, a 1% fee will be levied on rent or education-related payments. Bank of Baroda has also increased the interest rate on outstanding balances for its 'One Co-branded' credit cards from 3.49% to 3.75% per month, effective June 23. Meanwhile, ICICI Bank is discontinuing the 1% reward benefit on rent payments made via the Amazon Pay Credit Card, effective June 18. Furthermore, HDFC Bank customers should note that, starting June 25, they will receive SMS alerts only for UPI payments exceeding ₹100 and for UPI receipts exceeding ₹500; however, details regarding all transactions will continue to be sent via email.
**Stricter Margin Rules in the Stock Market**
For traders placing bets in the Futures and Options (F&O) segment of the stock market, SEBI's 50:50 margin rule has now come into full effect. Under this new regulation, investors are required to maintain at least 50% of their trading margin in cash or cash equivalents. It is no longer possible to meet the entire margin requirement solely by pledging shares. This move is expected to improve risk management within the market.
Rise in Solar Project Costs
A new regulation has been introduced for those taking steps towards clean energy. It has now been made mandatory for all solar projects—whether involving government subsidies or net metering—to utilize only those solar modules that are included in the ALMM (Approved List of Models and Manufacturers). This move by the government aims to boost domestic manufacturing. However, market experts believe that, as a result of this rule, the initial cost of installing solar systems in homes may rise slightly in the short term.
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