With the advent of new financial year i.e. April 1, prices of a host of services and products will change. These changes will have a direct impact our daily or long term expenses. Even a few penalties have been introduced i.e. in cash transaction and income tax return from the new financial year. Here we have chalked out the list of items and services that will get dearer or cheaper as the changes made in Union Budget 2017 comes into effect.
Products that will get costlier
Cigarettes, Pan masala, Cigar, Cheroots, Paper-rolled handmade bidis, Chewing tobacco, LED lamp components, Cashew nuts (roasted and salted), Aluminum ores and concentrates, Polymer coated MS tapes used in manufacturing of optical fibres, Silver coins and medallions.
Products that will get cheaper
RO membrane elements for household usage, LNG. Solar tempered glass used in solar panels, Fuel cell based power generating systems, Wind operated energy generator, Vegetable tanning extracts used in making leather products, POS machines card and fingerprint readers.
a) Health insurance and vehicle insurance to get dearer : From April 1, you will have shell out more money for health and vehicular insurance. The insurance watchdog IRDAI has green-signalled the proposal of general insurance companies to pay higher commissions to insurance agents and also to hike charge for third party insurance in case of vehicles. Third party insurance charge will go up by 40% to 50% depending on vehicle type. However, those owning private cars with the engine capacity below 1000 CC and two-wheelers with engine capacity less than 75CC have been kept out of this provision.
b) Booking railway tickets online to get cheaper: From April 1, Railways will not charge you any transaction fee for booking online tickets through the IRCTC website. Earlier, a service tax of Rs. 20 was levied while booking Sleeper Class tickets and Rs. 40 for AC class tickets.
d) Cash transaction and several other banking service charge will increase: India’s largest banker State Bank of India will start charging a new transaction fee from April 1. Under new provision, a maximum of three cash deposit transactions would be free per month and beyond that limit it will chargeable with Rs. 50 + service tax per transaction. Notedly, private banks like Axis, HDFC, ICICI began charging Rs 150 after three transaction limit from March 1 only. Additionally, SBI customers will also have to maintain a minimum balance in their savings account ranging from Rs. 1000 to Rs 5,000 – depending on their geographical location. An account holder in metro branch will be required to maintain more money in his account as compared to the one in non-metro branch. However, accounts opened under PM Jan Dhan Yojana and Basic Savings Bank Small Accounts are exempted from this rule. Also if your address in not updated and your new ATM or welcome kit is returned to the bank, Rs 100 will be charged from your account. Others PSUs banks may follow the SBI footsteps in terms of increasing charges.
e) Cash Payment over Rs 2 lakh will be penalised: Modi government has banned cash payment over Rs 2 lakh, anyone found violating this rule will face penalty as the provision becomes law from April 1,2017.
i) Delay in filing tax return to attract penalty
If you fail to file your tax return within stipulated time which is normally July 31st every year, you will have to pay a penalty of Rs 5,000 if filed by Dec 31, 2018 and Rs 10,000 if filed later. Such fee will be restricted to Rs 1,000 for small taxpayers with income up to Rs 5 lakh.
ii) Home loan interest claim on rented property restricted to Rs. 2 lakh
If you have a second house that you have rented out or you are planning such an investment, then you will not be getting home loan interest claim over Rs 2 lakh in your taxes from April 1. Earlier unlimited amount of interest paid on home loan taken for the property could be set off against your other income.
f) Group insurance for Defence services
Good news for army staff. The insurance cover for serving army personnel has been increased without any hike in the subscription being paid by them.