These money-related changes will take effect on January 1.
ATM charged increased
The fees for withdrawing cash from ATMs will be increased from January 1. Customers will have to shell out more money for cash and non-cash transactions at ATMs in excess of the free authorized monthly limit. Customers from Bengaluru, Mumbai, Chennai, Kolkata, Delhi and Hyderabad can benefit from up to three free transactions from their own ATMs. Customers in other cities can get five free transactions. The RBI has allowed banks to increase ATM fees to Rs.21 per transaction if they exceed the monthly limit for free transactions. “Applicable taxes, if any, will additionally be payable,” said a notification from the RBI.
Vehicle prices will increase
Vehicles will become more expensive as manufacturers increase prices due to higher input costs. Maruti Suzuki and Tata Motors have announced a price increase for their models of up to 2.5%, from January 2022. Toyota, Honda, Skoda, Renault, Volkswagen (between 2% and 5%), Citroën (3% ), Mercedes-Benz (2 percent), Audi (3 percent) and two-wheeler maker Hero MotoCorp (up to Rs 2,000) and two-wheeler companies Dukarti and Kawasaki have also raised the prices of their models in India.
Changing GST Rates
Changes in GST rates will cause prices to increase from January 1. Two-wheelers and three-wheelers on e-commerce platforms like Ola and Uber will attract 5% GST. GST rates on items such as shoes and clothing priced over Rs 1,000 have been increased from 5% to 12%. Fabrics, tents, synthetic yarns and blankets will also be charged the increased GST.
Indian Post Operations
Four cash transactions at India Payments Bank (IPBB) branches will be free for IPPB account holders. A fee of 0.50% of the transaction amount is payable for each subsequent transaction, subject to a minimum of 25 per transaction.
Five percent of the GST will be applicable on food purchased on the online platform. The amount billed for hotel tax will be passed on to consumers. In addition to this, 18% GST will be charged for other expenses including delivery charges
The revised instructions will apply to both new and existing secure deposit lockers and the facility for keeping items safe with banks. Banks are required to pay compensation to customers for theft, burglary, building vandalism, and employee fraud. That’s up to 100 times the annual locker rent. Currently, the bank has no responsibility for the items in the locker. Banks should not insist on term deposits from existing locker holders or those with a satisfactory operational account. If the rent hasn’t been paid for three years, the bank can open the locker and check. Banks will be required to incorporate a clause in the locker contract prohibiting the tenant from keeping anything illegal or dangerous in the lockers.
Failure to file computerized returns
The penalty for filing a tax return after the deadline has been reduced from Rs 10,000 to Rs 5,000. If the income is below the taxable limit, no penalty is payable.