Starting from October 1, 2023, there are some important changes coming to your personal finances. You should know that the deadline for adding nominees to your mutual fund folios, demat accounts, and trading accounts is September 30, 2023. Additionally, a new TCS rule for overseas expenses will go into effect next month. Also, keep in mind that September could be the last chance to exchange Rs 2,000 notes.
Here’re the Six Major Govt Changes to Be in Effect From Oct 1:
1. Mandatory to Add Nominees in Mutual Fund Accounts
Don’t forget, the deadline to add nominees to your mutual fund folios, including joint holdings, is September 30, 2023. If you miss this date, your folios will be frozen for debit transactions.
2. TCS Rule
From October 1, if your overseas credit card expenses go over Rs 7 lakh, you’ll face a 20 percent Tax Collected at Source (TCS). However, if these expenses are for medical or educational purposes, the TCS rate drops to 5 percent. For those taking loans for international education, there’s a reduced TCS rate of 0.5 percent once you exceed the Rs 7-lakh limit.
3. Deadline for Adding Nomination in Demat or Trading Account
The deadline for naming beneficiaries for existing trading and demat account holders is now September 30. This change comes as the market regulator, in a circular dated March 27, decided to implement the freezing of accounts, as outlined in paragraph 7 of the SEBI circular dated July 23, 2021, along with paragraph 3(a) of the SEBI circular dated February 24, 2022, from September 30, 2023, instead of the previously stated date of March 31, 2023.
4. Savings Account and Aadhaar
If you’ve invested in schemes like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Post office deposits, and other small savings plans, remember to submit your Aadhaar number to the post office or bank branch by the end of this month, which is September 30. Missing this deadline could lead to a temporary freeze on your small savings investments.
5. Exchanging 2,000 Currency Notes
If you still have Rs 2000 notes, make sure to deposit them in the bank by September 30, 2023. The Reserve Bank has set this date as the deadline for exchanging Rs 2000 notes.
6. Mandatory Birth Certificates
From October 1, 2023, birth certificates will serve as a single document for Aadhaar and government job applications. This change is a result of the Registration of Births and Deaths (Amendment) Act, 2023.