Team Blitz India
NEW DELHI: October is set to usher in a myriad changes across various sectors, impacting things from personal finance to the broader administrative processes. From alterations in the Tax Collection at Source (TCS) to streamlined documentation protocols for Aadhaar and Governmental positions through birth certificates, these changes are poised to impact millions nationwide.
Oct 7 new deadline for Rs 2k notes: The Reserve Bank of India (RBI)has extended deadline for exchanging Rs 2,000 notes till October 7, 2023. “According to the data received from banks, of the total value of Rs 3.56 lakh crore of Rs 2000 banknotes in circulation as on May 19, 2023, Rs 3.42 lakh crore has been received back leaving only ₹0.14 lakh crore in circulation as at the close of business on September 29, 2023,” RBI said in a release. September 30, 2023, was the earlier last day to exchange or deposit Rs 2,000 banknotes. The RBI had mentioned that it would determine the future status of the notes based on the quantity returned to/deposited in banks.
New TCS rules come in force: Starting October 1, new rules for tax collection at source (TCS) will be implemented, affecting various financial transactions, including overseas expenses. These charges are important for anyone planning foreign travel, investing in foreign stocks, mutual funds, crypto currencies abroad, or pursuing higher education overseas. Under the liberalised remittance scheme (LRS) by Reserve Bank of India (RBI), one may spend up to $250,000 annually. However, from October 1, any money transfer surpassing Rs 7 lakh (excluding medical and educational reasons) will be subjected to a 20% TCS.
Birth certificate aconsolidated document: Effective October 1, the Registration of Births and Deaths (Amendment) Act, 2023 will come into force nationwide. This allows a birth certificate to function as a consolidated document for a variety of purposes. This includes school enrolments, driver’s licence acquisition, voter list creation, Aadhaar registration, marriage registration, and even governmental job applications.
Nomination options must for MF, demat accounts: The Securities and Exchange Board of India (Sebi) has ruled that by September 30, 2023, all demat and mutual fund account owners must either submit a nomination or decline the nomination for their investments. Overlooking this could mean that from October 1, MF portfolios and demat accounts could be frozen for debit transactions, which includes fund redemptions and withdrawals.
Small savings scheme to freeze without Aadhaar/PAN: Participants of small savings schemes like PPF, SCS, National Savings Certificate, and others were required to submit their PAN and Aadhaar by September 30, 2023. Those who missed the deadline might find their accounts deactivated, and they will remain so until the necessary documents are provided, as per government notifications.