Introduction
May 2025 brings significant financial updates that every Indian consumer should be aware of. From increased ATM withdrawal fees to reduced home loan interest rates and crucial Income Tax Return (ITR) filing tips, staying informed can help you make better financial decisions this month.
1. ATM Withdrawal Fees Increased
Effective May 1, 2025, the Reserve Bank of India (RBI) has approved an increase in ATM transaction fees. Customers will now be charged up to ₹23 per transaction beyond the free monthly limit, up from the previous ₹21. This change applies to both cash withdrawals and balance inquiries at ATMs across all banks. [Source]
2. Home Loan Interest Rates Decline
In a move to stimulate economic growth, the RBI reduced the repo rate by 25 basis points to 6.00% in April 2025. This reduction has led to a decrease in home loan interest rates across major banks:
- SBI: Starting at 8.00% p.a. [Source]
- HDFC Bank: Starting at 8.50% p.a. [Source]
- ICICI Bank: Starting at 8.75% p.a. [Source]
Prospective homebuyers and those looking to refinance existing loans may find this an opportune time to secure favorable rates.
3. ITR Filing Tips for FY 2024-25
With the ITR filing season underway, here are some key updates and tips:
- Extended Eligibility for ITR-1: Taxpayers with long-term capital gains up to ₹1.25 lakh under Section 112A can now file using ITR-1, provided there are no carry-forward losses. [Source]
- Updated Forms: The Central Board of Direct Taxes (CBDT) has notified new ITR forms for AY 2025-26, incorporating changes to capture detailed deductions and income sources. [Source]
- Filing Deadline: The due date for filing ITR for FY 2024-25 (AY 2025-26) is July 31, 2025. It's advisable to file early to avoid last-minute hassles. [Source]
Conclusion
Staying updated with these financial changes is crucial for effective personal finance management. Increased ATM fees necessitate mindful cash withdrawals, while reduced home loan rates present opportunities for borrowers. Additionally, being aware of the latest ITR filing guidelines ensures a smooth tax filing experience. Stay informed and make the most of these updates to optimize your financial well-being.
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