6 Financial Rules Change on July 1 — Here Is What Costs More, What's Free, and What You Need to Do Before July 31
By The Squirrels·
Six Changes. Three Cost You More. One Saves You Money. Two Require Action.
Every July 1 brings a fresh set of regulatory and financial changes. Most coverage lists them. The Squirrels calculates what they actually mean for your wallet and your to-do list.
1. ITR Filing: The Clock Starts Now
What changed: The filing window for Income Tax Returns for FY 2025–26 (AY 2026–27) is open. The deadline for ITR-1 and ITR-2 filers — salaried individuals and those with income from house property or capital gains — is July 31, 2026.
What happens if you miss it: A belated return filed after July 31 attracts a penalty of up to ₹5,000 (₹1,000 if total income is under ₹5 lakh). You also lose the ability to choose between old and new tax regimes, and you cannot carry forward certain losses (capital losses, business losses) to future years.
The new Income Tax Act, 2025 replaces the 1961 Act for income earned from April 1, 2026 onwards — but this year's filing (for FY 2025–26) is still under the old Act's framework.
Action required: File before July 31. The new e-filing portal supports ITR-1 and ITR-2 for AY 2026–27.
2. Passport Fees: First Hike in 14 Years
What changed: The Ministry of External Affairs revised passport fees for the first time since 2012 — a 14-year gap. New charges effective July 1:
Passport Type | Old Fee | New Fee | Increase |
|---|---|---|---|
36-page (18+ years) | ₹1,500 | ₹2,500 | +₹1,000 |
60-page (18+ years) | ₹2,000 | ₹3,500 | +₹1,500 |
Minor (under 18) | ₹1,000 | ₹1,500 | +₹500 |
Tatkaal (36-page) | ₹3,500 | ₹5,000 | +₹1,500 |
Tatkaal (60-page) | ₹4,000 | ₹6,000 | +₹2,000 |
Who it affects: Anyone applying for a new passport, reissuing an expired one, or requesting additional pages. India issues approximately 1.5 crore passports annually.
The context: India's passport fees were among the lowest in the world. The US passport costs $165 (~₹15,000). The UK charges £88.50 (~₹9,500). Even after the hike, India's ₹2,500 remains comparatively affordable — but the 67% increase (₹1,500 → ₹2,500) is significant for first-time applicants, particularly students and young professionals.
3. Aadhaar Email Update: Free Until December
What changed: UIDAI has waived the ₹75 fee for updating your registered email address on Aadhaar through the mobile app. The free window runs from July 1 to December 31, 2026.
Who benefits: Anyone whose Aadhaar has an outdated or missing email address. Since email is increasingly used for OTP delivery, digital KYC, and government service notifications, this is a practical benefit.
Action required: Download the mAadhaar app, verify your identity via OTP, and update the email. Free for six months.
The saving: ₹75. Small per person, but across India's 1.4 billion Aadhaar holders, the aggregate waiver is substantial.
4. SBI Credit Cards: PhonePe Rewards Squeezed
What changed: SBI Card has revised the reward point structure for PhonePe SBI Credit Card PURPLE and SELECT BLACK variants.
What earns zero reward points from July 1:
Payments to educational institutions
Toll and bridge payments
Jewellery purchases
Gift card purchases
Utility bill payments made outside PhonePe
Insurance premiums paid outside PhonePe
UPI transactions through apps other than PhonePe
The impact: If you use your PhonePe SBI card for school fees, toll payments, or UPI transactions through Google Pay or Paytm, those transactions will no longer earn reward points. The changes effectively force spending through the PhonePe ecosystem to retain rewards — a co-branding strategy that benefits PhonePe's platform metrics, not necessarily the cardholder.
5. HDFC Credit Cards: Lounge Access Now Costs ₹60,000
What changed: HDFC Bank has revised airport lounge access for Regalia Gold and Diners Club Privilege cardholders. From July 1:
Old rule: Complimentary domestic lounge visits were automatic with the card.
New rule: You must spend at least ₹60,000 in the previous calendar quarter to qualify for 3 complimentary domestic lounge visits in the next quarter.
The math: To access lounges from July to September 2026, you must have spent ₹60,000 between April and June 2026. If you didn't, no lounge access — regardless of your card tier.
What this means: Lounge access has shifted from a card benefit to a spending incentive. The ₹60,000 quarterly threshold (₹20,000/month) is designed to encourage higher card usage. For cardholders who use their HDFC card lightly — preferring UPI or other cards for daily spending — this benefit effectively disappears.
6. RBI Anti-Mis-Selling: Full Refunds Mandated 🏦
What changed: The Reserve Bank of India has finalised its Responsible Business Conduct Directions (Second Amendment) requiring banks to provide full refunds and compensation to customers who are mis-sold financial products.
What "mis-selling" means: When a bank employee sells you a product (insurance policy, mutual fund, fixed deposit) that does not suit your needs, without adequate disclosure of risks, or by misrepresenting the product's features — that is mis-selling.
Implementation date: The RBI released the final framework on June 15, 2026, with an implementation date of January 1, 2027 — not July 1, as some reports have suggested. However, the notification itself is effective, and banks are expected to begin aligning their processes.
What it means for customers: If you have been sold an insurance policy bundled with a loan, or a high-risk investment product without proper risk disclosure, the new framework gives you a legal basis to demand a full refund.
The Balance Sheet: Who Wins and Who Pays
Change | Costs More | Saves Money | Requires Action |
|---|---|---|---|
ITR deadline | Penalty if missed (₹5,000) | — | File by July 31 |
Passport fees | +₹1,000 to ₹2,000 | — | — |
Aadhaar email | — | Saves ₹75 | Update via app |
SBI card rewards | Fewer reward points | — | Review spending |
HDFC lounge | Lost if <₹60K spend | — | Check Q2 spend |
RBI mis-selling | — | Refund rights | Jan 2027 start |
Net impact for most consumers: Higher passport costs and reduced credit card benefits are the tangible negatives. The free Aadhaar update and the anti-mis-selling framework are the positives. The ITR deadline is a procedural requirement with a penalty for non-compliance.
Frequently Asked Questions
When is the ITR filing deadline for FY 2025-26?
July 31, 2026 for individuals filing ITR-1 and ITR-2. Missing the deadline attracts a penalty of up to ₹5,000.
How much have passport fees increased?
A 36-page passport for adults now costs ₹2,500 (up from ₹1,500). This is the first fee revision since 2012.
Is the Aadhaar email update really free?
Yes, from July 1 to December 31, 2026, through the mAadhaar mobile app only. The ₹75 fee has been waived.
Do I need ₹60,000 spend for HDFC lounge access?
Yes, from July 1. You must have spent ₹60,000 on your eligible HDFC card in the previous calendar quarter to qualify for complimentary domestic airport lounge visits.
The Bottom Line
Three changes cost you more: passports (₹1,000+), SBI card rewards (reduced), and HDFC lounge access (now conditional). One saves you money: Aadhaar email update (₹75 waived). One protects you: RBI anti-mis-selling (refund rights from January 2027). One requires immediate action: ITR filing (deadline July 31, penalty ₹5,000).
The pattern across all six changes: benefits are being made conditional on spending or usage thresholds, while fees for government services are rising. The consumer who benefits most from these changes is the one who files taxes on time, updates Aadhaar proactively, and reads the fine print on their credit card terms. The consumer who benefits least is the one who doesn't.
By Squirrels' Data Intelligence · June 29, 2026
Six Changes. Three Cost You More. One Saves You Money. Two Require Action.
Every July 1 brings a fresh set of regulatory and financial changes. Most coverage lists them. The Squirrels calculates what they actually mean for your wallet and your to-do list.
1. ITR Filing: The Clock Starts Now
What changed: The filing window for Income Tax Returns for FY 2025–26 (AY 2026–27) is open. The deadline for ITR-1 and ITR-2 filers — salaried individuals and those with income from house property or capital gains — is July 31, 2026.
What happens if you miss it: A belated return filed after July 31 attracts a penalty of up to ₹5,000 (₹1,000 if total income is under ₹5 lakh). You also lose the ability to choose between old and new tax regimes, and you cannot carry forward certain losses (capital losses, business losses) to future years.
The new Income Tax Act, 2025 replaces the 1961 Act for income earned from April 1, 2026 onwards — but this year's filing (for FY 2025–26) is still under the old Act's framework.
Action required: File before July 31. The new e-filing portal supports ITR-1 and ITR-2 for AY 2026–27.
2. Passport Fees: First Hike in 14 Years
What changed: The Ministry of External Affairs revised passport fees for the first time since 2012 — a 14-year gap. New charges effective July 1:
Passport Type | Old Fee | New Fee | Increase |
|---|---|---|---|
36-page (18+ years) | ₹1,500 | ₹2,500 | +₹1,000 |
60-page (18+ years) | ₹2,000 | ₹3,500 | +₹1,500 |
Minor (under 18) | ₹1,000 | ₹1,500 | +₹500 |
Tatkaal (36-page) | ₹3,500 | ₹5,000 | +₹1,500 |
Tatkaal (60-page) | ₹4,000 | ₹6,000 | +₹2,000 |
Who it affects: Anyone applying for a new passport, reissuing an expired one, or requesting additional pages. India issues approximately 1.5 crore passports annually.
The context: India's passport fees were among the lowest in the world. The US passport costs $165 (~₹15,000). The UK charges £88.50 (~₹9,500). Even after the hike, India's ₹2,500 remains comparatively affordable — but the 67% increase (₹1,500 → ₹2,500) is significant for first-time applicants, particularly students and young professionals.
3. Aadhaar Email Update: Free Until December
What changed: UIDAI has waived the ₹75 fee for updating your registered email address on Aadhaar through the mobile app. The free window runs from July 1 to December 31, 2026.
Who benefits: Anyone whose Aadhaar has an outdated or missing email address. Since email is increasingly used for OTP delivery, digital KYC, and government service notifications, this is a practical benefit.
Action required: Download the mAadhaar app, verify your identity via OTP, and update the email. Free for six months.
The saving: ₹75. Small per person, but across India's 1.4 billion Aadhaar holders, the aggregate waiver is substantial.
4. SBI Credit Cards: PhonePe Rewards Squeezed
What changed: SBI Card has revised the reward point structure for PhonePe SBI Credit Card PURPLE and SELECT BLACK variants.
What earns zero reward points from July 1:
Payments to educational institutions
Toll and bridge payments
Jewellery purchases
Gift card purchases
Utility bill payments made outside PhonePe
Insurance premiums paid outside PhonePe
UPI transactions through apps other than PhonePe
The impact: If you use your PhonePe SBI card for school fees, toll payments, or UPI transactions through Google Pay or Paytm, those transactions will no longer earn reward points. The changes effectively force spending through the PhonePe ecosystem to retain rewards — a co-branding strategy that benefits PhonePe's platform metrics, not necessarily the cardholder.
5. HDFC Credit Cards: Lounge Access Now Costs ₹60,000
What changed: HDFC Bank has revised airport lounge access for Regalia Gold and Diners Club Privilege cardholders. From July 1:
Old rule: Complimentary domestic lounge visits were automatic with the card.
New rule: You must spend at least ₹60,000 in the previous calendar quarter to qualify for 3 complimentary domestic lounge visits in the next quarter.
The math: To access lounges from July to September 2026, you must have spent ₹60,000 between April and June 2026. If you didn't, no lounge access — regardless of your card tier.
What this means: Lounge access has shifted from a card benefit to a spending incentive. The ₹60,000 quarterly threshold (₹20,000/month) is designed to encourage higher card usage. For cardholders who use their HDFC card lightly — preferring UPI or other cards for daily spending — this benefit effectively disappears.
6. RBI Anti-Mis-Selling: Full Refunds Mandated 🏦
What changed: The Reserve Bank of India has finalised its Responsible Business Conduct Directions (Second Amendment) requiring banks to provide full refunds and compensation to customers who are mis-sold financial products.
What "mis-selling" means: When a bank employee sells you a product (insurance policy, mutual fund, fixed deposit) that does not suit your needs, without adequate disclosure of risks, or by misrepresenting the product's features — that is mis-selling.
Implementation date: The RBI released the final framework on June 15, 2026, with an implementation date of January 1, 2027 — not July 1, as some reports have suggested. However, the notification itself is effective, and banks are expected to begin aligning their processes.
What it means for customers: If you have been sold an insurance policy bundled with a loan, or a high-risk investment product without proper risk disclosure, the new framework gives you a legal basis to demand a full refund.
The Balance Sheet: Who Wins and Who Pays
Change | Costs More | Saves Money | Requires Action |
|---|---|---|---|
ITR deadline | Penalty if missed (₹5,000) | — | File by July 31 |
Passport fees | +₹1,000 to ₹2,000 | — | — |
Aadhaar email | — | Saves ₹75 | Update via app |
SBI card rewards | Fewer reward points | — | Review spending |
HDFC lounge | Lost if <₹60K spend | — | Check Q2 spend |
RBI mis-selling | — | Refund rights | Jan 2027 start |
Net impact for most consumers: Higher passport costs and reduced credit card benefits are the tangible negatives. The free Aadhaar update and the anti-mis-selling framework are the positives. The ITR deadline is a procedural requirement with a penalty for non-compliance.
Frequently Asked Questions
When is the ITR filing deadline for FY 2025-26?
July 31, 2026 for individuals filing ITR-1 and ITR-2. Missing the deadline attracts a penalty of up to ₹5,000.
How much have passport fees increased?
A 36-page passport for adults now costs ₹2,500 (up from ₹1,500). This is the first fee revision since 2012.
Is the Aadhaar email update really free?
Yes, from July 1 to December 31, 2026, through the mAadhaar mobile app only. The ₹75 fee has been waived.
Do I need ₹60,000 spend for HDFC lounge access?
Yes, from July 1. You must have spent ₹60,000 on your eligible HDFC card in the previous calendar quarter to qualify for complimentary domestic airport lounge visits.
The Bottom Line
Three changes cost you more: passports (₹1,000+), SBI card rewards (reduced), and HDFC lounge access (now conditional). One saves you money: Aadhaar email update (₹75 waived). One protects you: RBI anti-mis-selling (refund rights from January 2027). One requires immediate action: ITR filing (deadline July 31, penalty ₹5,000).
The pattern across all six changes: benefits are being made conditional on spending or usage thresholds, while fees for government services are rising. The consumer who benefits most from these changes is the one who files taxes on time, updates Aadhaar proactively, and reads the fine print on their credit card terms. The consumer who benefits least is the one who doesn't.