August 2026 and your finances: ITR deadline, CKYC 2.0 rollout, RBI policy, LPG prices and other key financial changes to watch

August will bring a host of financial and banking-related changes that could affect taxpayers, bank customers, credit card holders and railway passengers. From the rollout of the new Central KYC (CKYC) 2.0 framework and revised banking charges to important tax deadlines and the Reserve Bank of India's monetary policy decision, several developments are lined up during the month.

Here is a look at the major financial changes and events scheduled for August.

ITR filing deadline for businesses and professionals

The Income Tax Department has set August 31, 2026, as the deadline for filing Income Tax Returns (ITRs) for taxpayers filing ITR-3 and ITR-4 who are not liable for a tax audit. The due date applies to self-employed professionals, freelancers, small business owners and taxpayers opting for presumptive taxation schemes under Sections 44AD and 44ADA of the Income Tax Act.

Taxpayers who fail to meet the deadline may have to pay a late filing fee of up to ₹5,000 under Section 234F, besides interest on any outstanding tax liability under Section 234A.

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CKYC 2.0 rollout begins

A revamped Central Know Your Customer (CKYC) 2.0 framework will start rolling out from August 1, with the objective of making customer verification faster and more seamless across financial institutions.

Under the new system, customers whose KYC details have already been verified will be able to reuse those records across participating institutions after providing consent, reducing the need to repeatedly submit the same documents. Banks and insurance companies are expected to adopt the framework first, while mutual funds, stockbrokers and other regulated entities will be onboarded in phases.

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Banks to revise service charges

Several banks will implement revised service charges from August 1. For instance, Ujjivan Small Finance Bank has announced that SMS alert charges will be revised to ₹0.30 per message, subject to a monthly cap.

Customers should also check whether their banks have revised charges relating to debit card maintenance, account services or other banking facilities, as changes may vary from one lender to another.

New rules for credit card users

Credit card customers may also notice changes following the Reserve Bank of India's latest guidelines aimed at improving billing transparency.

Under the revised framework, unpaid convenience fees, penalties and taxes cannot be included while calculating finance charges on outstanding credit card balances. The change is expected to lower borrowing costs for customers who revolve their credit card dues.

In addition, some banks may revise reward programmes, annual fees and other card-related charges during the month. Customers are advised to review updated terms issued by their card providers.

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Tatkal ticket booking process changes

From August 1, Indian Railways will introduce a revised Tatkal ticket booking process at reservation counters. Under the new system, passengers will receive a token before booking, enabling the entire booking process to be completed in a single visit instead of requiring them to return later after collecting a token.

The move is aimed at reducing waiting time and improving the booking experience during peak demand.

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LPG prices to be revised

Oil marketing companies will announce revised domestic and commercial LPG cylinder prices on August 1 as part of their monthly price review.

The revised prices for Indane, Bharat Gas and HP Gas will depend on international crude oil prices, global LPG benchmarks and currency movements. Since LPG rates vary across cities, consumers should check the latest prices applicable in their location before booking a refill.

RBI monetary policy decision on August 5

The Reserve Bank of India's Monetary Policy Committee (MPC) will meet from August 3 to August 5, with the policy decision scheduled to be announced on August 5.

The outcome of the meeting will be closely tracked by borrowers, depositors and investors, as any change in the repo rate or liquidity stance could influence home loan EMIs, lending rates, fixed deposit returns and overall borrowing costs across the banking system.

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