Insurance, Cash Transactions: What Will Cost You More from 1 April

On 1 April, a new financial will start and there will be some services which one will have to pay more for. Some penalties might also be levied under the new norms decided. Here is a list things created by The Economic Times that one might have to pay extra for.

1. Health Insurance and Vehicle Insurance

The IRDAI, insurance regulator, has allowed insurance companies to pay extra commissions to their agents and also charge more for third party insurance in case of vehicles.

Because of this, the third party insurance might go up by 40-50% depending on the type of the vehicle.

2. Cash Transactions

Private banks have already introduced new transaction charges since 1 March. Now, SBI is also going to charge on transactions. SBI will allow three free cash deposit transactions per month and transactions beyond the limit will chargeable at Rs 50 + service tax per transaction. IMPS, USSD and UPI charges will also change.

3. Penalty on Cash Payments (More than Rs 2 Lakh)

The government has banned cash payments of over Rs 2 lakh and you would be penalised if found violating this rule with effect from 1 April.

4. Changes in Income Tax

Home loan interest claim on rented property will now be limited up to Rs 2 lakh and delay in tax return filing will attract a penalty. One will have to pay a fine of Rs 5,000 if filed by 31 Dec 2018 and Rs 10,000 if filed later.