Your Mid-Year Tax Deadlines
July is a critical month for tax compliance in India. The most pressing deadline is July 31, 2026, for filing Income Tax Returns (ITR) for the financial year 2025-26. This applies to most individual taxpayers, including salaried persons and those with
income from house property, whose accounts do not require an audit. Missing this deadline can lead to penalties, which can be up to ₹5,000 for those with an annual income over ₹5 lakh. Beyond the ITR deadline, July also marks the end of the first quarter of the financial year, bringing several compliance dates for businesses regarding the deposit of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) for the month of June.
Stability in Savings, Shift in Strategy
For those invested in government-backed small savings schemes, there's a sense of stability. The government has announced that interest rates for schemes like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and National Savings Certificate (NSC) will remain unchanged for the July-September 2026 quarter. This marks the ninth consecutive quarter without a rate change. The PPF rate stays at 7.1 per cent, while the Senior Citizen Savings Scheme and SSY continue to offer a higher rate of 8.2 per cent. While the unchanged rates provide predictability for conservative investors, this is also a good moment to review your portfolio. If your financial goals require higher growth, you might consider if your current asset allocation needs recalibration in light of the stable but modest returns from these schemes.
New RBI Rules to Protect Consumers
In a significant move to protect consumers, the Reserve Bank of India (RBI) is implementing a new framework to curb the mis-selling of financial products by banks, effective July 1, 2026. Under these new regulations, if a customer is mis-sold a financial product through misleading information or incorrect practices, they will be entitled to a full refund and compensation for any losses incurred. This change empowers customers and places greater accountability on banks to ensure that the products they sell, such as loans or insurance, are suitable for the buyer's needs. This new rule should give you more confidence when dealing with financial institutions, knowing there is a clear recourse for mis-selling.
Changes to Credit Card Perks
Credit card users should also take note of some key changes from July 1. HDFC Bank has updated its policy for complimentary domestic airport lounge access. Cardholders will now need to have spent at least ₹60,000 in the previous calendar quarter to be eligible for three free visits in the current quarter. For instance, to get lounge access between July and September, you needed to have spent ₹60,000 between April and June. Additionally, SBI Card is revising the reward points program for some of its co-branded cards, which may affect how you earn and redeem points.
Other Notable Updates This July
A few other updates are also effective this month. For those needing a new passport, fees for both normal and Tatkaal applications have increased from July 1. On a positive note, the Unique Identification Authority of India (UIDAI) is waiving the ₹75 fee for updating your email address on your Aadhaar card through the mobile app for six months, from July 1 to December 31, 2026. Furthermore, after a five-day suspension for a system upgrade, the Employee Provident Fund Organisation (EPFO) is set to restore its online services from July 1.
