3 Financial Changes That Will Affect Your Expenses In August
A new month has begun and there are some changes that were imposed with effect from 1 August that will impact your household expenses and monthly savings.
SBI IMPS Charges
If you are a State Bank of India (SBI) customer, charges on money transfer using mobile or internet banking via IMPS (Immediate Payment Service) are lifted from 1 August 2019. Charges for IMPS through bank branches have been waived to the extent of Rs 1,000.
“The bank will waive-off IMPS charges for its INB, MB and YONO customers effective from August 1, 2019,” SBI had said in a statement last month.
In July, SBI had waived off fee on RTGS and NEFT transactions in accordance with the RBI’s decision to promote digital transactions.
RTGS is used for high value transactions, while NEFT is for transfers to the amount of Rs 2 lakh.
Kerala Flood Cess
A year after Kerala suffered massive destruction from flood, one percent ‘flood cess’ will be imposed in the state in addition to GST on goods and services with effect from 1 August 2019 for a period of 2 years.
The revenue from the cess will help the state government to gather funds to reconstruct and rebuild the damage caused by flood and also pay compensation to those affected by it.
During the budget presentation in January, Kerala’s Finance Minister TM Thomas Isaac had announced the imposition of one percent cess on goods that fall within the GST tax brackets of 12, 18 and 28 percent and a 0.25 percent cess on goods that fall under the fifth schedule of GST, which includes gold, silver and platinum ornaments for a period of 2 years.
It will increase the prices of more than 900 commodities that fall in these categories, including rice.
Lower GST on Electric Vehicles
In July, the GST Council reduced taxes imposed on electric vehicles from 12 percent to 5 percent. The rates became effective from 1 August. Taxes on chargers and charging stations for EVs were also cut from 18 percent to 5 percent.
This is a significant price cut for those looking to buy electric vehicles.
- For those looking to take home loans, the 10 basis points cut in interest rates on HDFC housing loans will be effective from 1 August 2019.
- SBI and PNB fixed deposit interest rate cut is applicable from 1 August.
- Non-subsidized LPG cylinder rates were lowered by Rs 65 for the month of August.