The Final Lap for ITR Filing
The most pressing deadline for many taxpayers is just around the corner. For salaried individuals, pensioners, and those with income from capital gains or house property who typically file ITR-1 or ITR-2, the deadline to submit returns for the Financial
Year 2025-26 is July 31, 2026. Missing this date can lead to penalties, loss of the ability to carry forward certain losses, and delays in receiving refunds. However, in a significant change this year, taxpayers with business or professional income who are not subject to a tax audit (usually filing ITR-3 or ITR-4) have been given an extra month. Their deadline has been extended to August 31, 2026, providing much-needed relief and extra time to ensure compliance.
TCS on Foreign Spending: A Key Watchout
One of the most significant tax changes for the current financial year relates to Tax Collected at Source (TCS) on foreign remittances under the Liberalised Remittance Scheme (LRS). While these rules became effective from April 2026, their impact will be felt as you consolidate your financial data for ITR filing. For most purposes like investments, gifts, or property purchase abroad, a 20% TCS is applicable on amounts exceeding a threshold of ₹10 lakh in a financial year. However, for education and medical expenses, the rate has been reduced to 2% on amounts above ₹10 lakh. A flat 2% TCS now applies to all overseas tour packages from the first rupee, without any threshold. It's crucial to remember that international spending on credit cards while abroad currently remains outside the ambit of TCS, a notable exception in the rules. This TCS amount can be claimed as a credit against your final tax liability when you file your return.
New RBI Rules to Protect You
Effective July 1, 2026, the Reserve Bank of India (RBI) has implemented a new framework to curb the mis-selling of financial products by banks. This is a major win for consumers. If a bank or its representative mis-sells you a product like insurance or a mutual fund, you will now be entitled to a full refund and even compensation for any financial losses incurred. This move aims to increase accountability and ensure that financial institutions act in the best interest of their customers, providing you with a stronger safety net when making investment or insurance decisions.
Other Money Changes in July
Alongside the ITR rush, several other financial adjustments took effect on July 1. Applying for a passport has become more expensive, with fees for a standard 36-page booklet increasing from ₹1,500 to ₹2,500. On a brighter note, the Unique Identification Authority of India (UIDAI) is waiving the ₹75 fee to update your email address in your Aadhaar records via the mobile app, a free service available until December 31, 2026. Additionally, several banks have revised their credit card reward programs and lounge access policies. For instance, some HDFC Bank cardholders now need to meet a minimum quarterly spending threshold to get complimentary lounge access.
Looking Ahead: Securing Your Investments
While not a July change, the Securities and Exchange Board of India (SEBI) has announced a significant update for investors. Starting September 1, 2026, it will be mandatory for anyone opening a new single-holder demat account or mutual fund folio to either add a nominee or formally opt out by signing a declaration. This change aims to simplify the process of succession and reduce the growing volume of unclaimed assets in the market. You can add up to three nominees, and the process has been simplified by removing the need for a witness signature in most cases for physical forms. It's a good time to review your existing investments and ensure your nomination details are up to date.
