In October, several significant changes are set to take place in the personal finance and administrative landscape of the country. These changes will have a direct impact on the lives of millions of people across India. Let’s take a closer look at these transformations:
- New TCS rule:
When credit card expenses for overseas purposes go beyond ₹7 lakh, a 20 per cent tax collection at source (TCS) will apply. Nevertheless, if these expenses are for medical or educational reasons, the TCS rate will be reduced to 5 per cent. Individuals obtaining loans for overseas education will have a lower TCS rate of 0.5 percent applied, but this lower rate is applicable only after exceeding the ₹7-lakh threshold.
In the Union Budget 2023-24, there was an increase in the TCS rates for overseas tour packages and funds remitted under LRS (except for education and medical purposes) from the current 5 percent to 20 percent.
2. Mutual fund folios nomination:
The deadline to designate nominees for all existing mutual fund folios, including jointly-held ones, is September 30, 2023. Failure to do so by this date will result in the folios being restricted from debit transactions.
3. Sebi nomination deadline for demat, trading accounts:
The cutoff date for eligible existing trading and demat account holders to appoint a beneficiary for their accounts is September 30th. “Based on the assessment of the trading as well as demat accounts in which choice of nomination details (i.e. furnishing of nomination or declaration for opting out of nomination) has not been updated and on the basis of representations received from the stakeholders, it has been decided that the provisions mentioned at para 7 of SEBI circular dated July 23, 2021, read with para 3 (a) of SEBI circular dated February 24, 2022, with regard to freezing of accounts shall come into force with effect from September 30, 2023 instead of March 31, 2023,” the market regulator stated in a circular dated 27 March.
4. Exchange of ₹2,000 banknotes:
If you possess ₹2000 notes, it’s advisable to ensure their deposit by September 30, 2023. The Reserve Bank has established September 30 as the deadline for exchanging ₹2000 notes, and as of now, there have been no reports of an extension to this deadline.
5. Birth certificates to become single document for admission to educational institutions
Starting October 1, 2023, the Registration of Births and Deaths (Amendment) Act, 2023 will be effective nationwide. This amendment enables the utilisation of a birth certificate as a sole document for various purposes, including gaining admission to educational institutions, obtaining a driver’s license, compiling voter lists, acquiring an Aadhaar number, registering marriages, or securing government job appointments.