While an annual fee is usually charged on credit cards, the RBI has recently asked the banks to introduce an ATM transaction fee. More than 5 transactions at your own Bank’s ATM will be charged by the bank. Also, only 3 transactions will be free at other Bank’s ATM. Currently, these limits are only applicable in the metro cities – Bangalore, Chennai, Delhi , Hyderabad , Kolkatta, & Mumbai.
Do reach out to your bank to find out what its charges will be. Some banks may still allow unlimited transactions based on higher account balances. And some banks may follow their own maximum limits for transactions allowed. Banks have also come up with fees that shall be charged, most of them will be charging a fee of Rs 20 for a financial transaction and Rs 9.55 for a non-financial transaction. A non-financial transaction would include balance enquiry, cheque book requests etc.
If you are a freelancer – this ATM transaction fee as well as credit card annual fees are deductible expenses from your freelancing income– assuming the bank account and the credit card is used for your freelancing work. You can also deduct bank charges of other nature.
Do you have any questions about deductible expenses for a freelancer, reach out to us and we will be happy to help!