A series of changes will come in the personal finance landscape in the month of October. From the new tax collection at source (TCS) rules to birth certificates becoming a single document For Aadhaar and government jobs, these transformations are poised to directly impact the lives of millions across the country.
Let's delve into the details of these changes:
New tax collection at source (TCS) rules
Starting October 1, 2023,
new tax collection at source (TCS) rules will be implemented, affecting various financial transactions, including overseas expenses. These changes are important for anyone planning international travel, investing in foreign stocks, mutual funds, cryptocurrencies abroad, or pursuing higher education overseas.
Under the Liberalised Remittance Scheme (LRS) by the Reserve Bank of India (RBI), one can send up to $250,000 in a year. Starting October 1, 2023, any remittance exceeding Rs 7 lakh for purposes other than medical and educational will have a TCS of 20 percent.
Small savings schemes to freeze if Aadhaar, PAN not submitted
Individuals who have opted to
invest in small savings schemes such as Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), National Savings Certificate, among others must mandatorily submit their Permanent Account Number (PAN) and Aadhaar card documents by September 30, 2023. Failure to do the same may result in the suspension of the accounts from October 1 until the documents are provided, as per government's notification.
Birth certificates to become a single document for Aadhaar, government jobs
The Registration of Births and Deaths (Amendment) Act, 2023 will come into force across the country from October 1, 2023, allowing the use of a birth certificate as a single document for admission to an educational institution, issuance of a driving licence, preparation of voter list, Aadhaar number, registration of marriage or appointment to a government job.
RBI likely to provide update on Rs 2,000 notes
The Reserve Bank of India (RBI) earlier stated that even though the notes would continue to be accepted as legal tender beyond that day, September 30, 2023, is the last day to exchange or deposit the withdrawn Rs 2000 banknotes. When announcing the withdrawal, the RBI mentioned that it would determine the future status of the notes based on the quantity returned to/deposited in banks.
Given that, the central bank is expected to provide an update on October 1.
New debit/credit card rules
Starting from October 1, 2023, the Reserve Bank of India (RBI) has asked banks to offer cards on multiple networks and give customers the option to select their preferred card network. At the moment, when someone applies for a debit or credit card, the network provider is normally determined by the card issuer.
First Published: Sept 26, 2023 12:13 PM IST
