RBI MPC meet, tax deadlines, credit card changes and more: What December holds for your finances

The month of December will be filled with many important financial happenings. As the year comes to a close, many important deadlines are approaching too, like the final chance to file belated tax returns and to update Aadhaar documents for free online. Let’s have a look at the major financial alters for next month.

RBI MPC meeting

Aadhaar free document update

Advance tax instalment

As per Section 208 of the Income Tax Act 1961, individuals with a tax liability of ₹10,000 or above are required to pay advance tax. Advance tax is income tax that one pays in advance instead of a lump-sum payment at the end of the year as per the requirements of the income tax department. It is basically a ‘pay as you earn’ tax that needs to be paid in the same year the income is earned according to the due dates set by the income tax authorities. For salaried individuals, employers typically deduct tax at source (TDS) on salary income. However, they have to pay advance tax on additional income such as from interest on deposits, rental income, or capital gains.

Advance tax must be paid in four installments and 75% of advance tax payment is due by December 15. If one fails to pay advance tax or delays the payment, a penalty of 1% will be applicable per month under Section 234C of the Income Tax Act 1961.

Belated tax returns

The final deadline to file belated tax returns or revised tax returns is December 31, 2024. While the original deadline to file tax returns was July 31, 2024, belated tax returns can still be filed until the year-end. However, there will be a penalty of ₹5,000 for late tax filing. For those who earn below ₹5 lakh per annum, the penalty will be ₹1,000.

Credit cards

There are many changes related to credit cards set for December 2024. Axis Bank will bring changes to its credit card fees from December 20 like introducing a new redemption fee. Changes in interest rates and additional charges for certain transactions are also expected by the bank, as per reports. The redemption fee will be accessible to those who use EDGE Rewards or Miles. Notably, the monthly interest rate will be increased to 3.75%. Many other changes are also expected in the Axis Bank credit cards like a 1% fee on educational payments through third-party applications, a 1% fee on rent transactions, etc.

AU Small Finance Bank’s Ixigo AU credit card will have changes in its reward point policy from December 22. The customers will no longer earn reward points on some transactions including rent, educational and government payments, etc. Reportedly, there will also be zero percent forex markup on the cards starting from December 23. This means that the bank will stop offering reward points on international transactions as well.