From ITR Rules to RBI Policy: Key Changes Coming in August

New Delhi: August brings a slew of financial deadlines and events that could affect taxpayers and banking customers, including the August 31 income tax return (ITR) deadline for businesses and professionals, the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, and bank service charge changes.

Taxpayers who are required to file ITR-3 or ITR-4 and are not subject to a tax audit — including self-employed professionals, freelancers, and small business owners using presumptive taxation under Sections 44AD and 44ADA — must file their income tax returns by August 31.

A late filing fee penalty could be up to Rs 5,000 under Section 234F, along with interest on unpaid tax under Section 234A, where applicable.

The Reserve Bank of India’s Monetary Policy Committee (MPC) meeting is scheduled to start on August 3, with its policy decision due on August 5.

The RBI’s stance on interest rates and liquidity could influence home loan EMIs, lending rates, and fixed-deposit returns in the coming months.

The RBI is likely to keep policy rates unchanged as consumer price inflation is expected to remain above 5 per cent for the next two quarters, and Q1 FY27 domestic product growth may exceed about 7 per cent, a recent report said.

An explicitly dovish message is less likely given oil volatility, rupee pressure, and external flow caution.

Meanwhile, Indian Railways has launched a token-based system for Tatkal ticket booking at reservation counters from August 1 to streamline the booking process and reduce crowding at ticket counters.

Axis Bank will cut benefits on its premium Magnus for Burgundy card from August 28, raising the Dynamic Currency Conversion markup from 1.5 per cent to 2 per cent. Reward points on toll-related transactions and gift-card purchases will be discontinued.

Several banks are set to revise select service charges in August, such as debit card annual maintenance charges, transaction fees, or other banking service charges.

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