Five Upcoming Personal Finance Changes That Are Going To Take Place In October

As October month 2023 approaches, there are several significant financial changes on the horizon. In this article, we highlight key alterations in the realm of personal finance set to take effect next month. 

October will witness a series of shifts in the personal finance landscape, spanning from new tax collection at source (TCS) regulations to the unification of birth certificates for Aadhaar and government job applications. 

These changes are anticipated to have a direct impact on the lives of countless individuals nationwide.

1. MF and Demat Accounts May Freeze Without Nomination Option

The Securities and Exchange Board of India (SEBI) has issued a mandate, requiring all demat and mutual fund account holders to provide nomination declarations or choose to exclude nominations for their investments by September 30, 2023. 

Failure to complete this crucial requirement could lead to the freezing of Mutual Fund (MF) folios and demat accounts for debit transactions, including redemptions and withdrawals, starting October 1, 2023.

2. Small Savings Schemes at Risk of Suspension Without Aadhaar and PAN Submission

Individuals who have chosen to invest in small savings schemes, including the Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), and National Savings Certificate, are required to submit their (PAN) & Aadhaar card documents by 30th September 2023. 

Failing to comply with this requirement may lead to the suspension of these accounts starting October 1, as per a government notification.

3. Tax Changes Impacting International Transactions

New tax rules are coming on October 1, 2023, and they will impact various financial transactions, especially when you're spending money abroad. 

These changes affect things like international travel, investing in foreign stocks or cryptocurrencies, and studying overseas.

If you are using the Liberalised Remittance Scheme (LRS) by the Reserve Bank of India (RBI), which lets you send up to $250,000 per year, there is an important change. 

Starting October 1, 2023, if you send more than Rs. 7 lakh for reasons other than medical or educational purposes, you will face a 20 percent tax called TCS.

4. RBI Expected to Share Update on Rs 2,000 Notes

The Reserve Bank of India (RBI) previously communicated that while the Rs 2,000 notes would remain valid legal tender beyond September 30, 2023, this date marks the final opportunity for exchanging or depositing these notes. 

The RBI had indicated that the future status of these notes would depend on the quantity returned or deposited in banks. In light of this, the central bank is anticipated to provide an update on October 1.

5. Single Birth Certificate for Aadhaar and Government Jobs Starting October 1, 2023

The Registration of Births and Deaths (Amendment) Act, 2023, will be implemented nationwide from October 1, 2023. This act introduces a significant change, enabling the use of a single birth certificate for various purposes, including admission to educational institutions, obtaining a driving license, voter list inclusion, Aadhaar registration, marriage registration, and government job appointments.

 

Also Read: Conditions For Tax Deduction on Bank Fixed Deposits & Form 15G Requirements

---

Leave a reply

Your email address will not be published. Required fields are marked *