“Key Changes Impacting Personal Finance and Administration in India from October 1”

October Brings Key Changes in India's Personal Finance and Administration

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:

1. New TCS Rule: When credit card expenses for overseas purposes go beyond ₹7 lakh, a 20 percent 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 percent. 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. The provisions regarding freezing of accounts shall come into force with effect from September 30, 2023, instead of March 31, 2023.

4. Exchange of ₹2,000 Banknotes: If you possess ₹2,000 notes, it’s advisable to ensure their deposit by September 30, 2023. The Reserve Bank has established September 30 as the deadline for exchanging ₹2,000 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 utilization 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.

These changes are poised to impact the way individuals manage their finances and engage with various administrative processes. As these deadlines approach, it’s essential for people to stay informed and take the necessary steps to comply with the new regulations.

Sources By Agencies

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