Five major financial changes from October: Check full details here
New Delhi: A series of significant changes in the world of personal finances are set to roll out in the upcoming month of October. These changes will have a direct impact on the lives of millions of people across the country. From new tax rules to vital documents like birth certificates, here’s what you need to know: New Tax Collection Rules (TCS): Starting on October 1, 2023, we will see the introduction of new tax collection rules (TCS) that will affect various financial transactions, including those involving international expenses.
These rules are essential for anyone planning to travel abroad, invest in foreign stocks, mutual funds, or cryptocurrencies, or pursue higher education overseas. Under the Reserve Bank of India’s (RBI) Liberalised Remittance Scheme (LRS), you can send up to $250,000 abroad in a year. However, starting October 1, 2023, if you send more than Rs 7 lakh abroad for purposes other than medical and educational, a TCS of 20 percent will be applicable.
Small Savings Schemes and Aadhaar-PAN Linkage: For individuals investing in small savings schemes such as the Public Provident Fund (PPF), Senior Citizens Savings Schemes (SCSS), and National Savings Certificate, a mandatory requirement is in place. You must submit your permanent account number (PAN) and Aadhaar card documents by September 30, 2023.
Failure to do so could result in the suspension of your accounts from October 1 until the necessary documents are provided, as per a government notification. Birth Certificates: From October 1, 2023, the Registration of Births and Deaths (Amendment) Act, 2023, will be in effect nationwide. This means your birth certificate can now serve as a single document for multiple purposes, including admission to educational institutions, obtaining a driving licence, getting a voter ID, registering for Aadhaar, and even applying for a government job. Rs 2000 notes: The Reserve Bank of India (RBI) had previously stated that while Rs 2000 notes would still be accepted as legal tender beyond September 30, 2023, that date would be the last opportunity to exchange or deposit these notes. The RBI had mentioned that the future status of these notes would depend on the quantity returned or deposited in banks.
New Debit/Credit Card Rules: Starting October 1, 2023, the Reserve Bank of India (RBI) has directed banks to offer cards on multiple networks and give customers the option to choose their preferred card network. Currently, when you apply for a debit or credit card, the card issuer typically determines the network provider.
