A number of changes will occur in the personal finance landscape in October. From new tax collection at source (TCS) rules to birth certificates becoming a single document for Aadhaar and government affairs, these transformations are set to directly impact the lives of millions across the country.
Now let’s look at the details of these changes:
New tax collection at source (TCS) rules
Under the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS), up to $250,000 can be sent annually. From October 1, 2023, the TCS on any remittance exceeding Rs 7 lakh for purposes other than medical and educational purposes will be 20 per cent.
Small savings schemes will be frozen if Aadhaar and PAN are not offered
Birth certificates will be single document for Aadhaar and government affairs
The Registration of Births and Deaths (Amendment) Bill, 2023 will come into force across the country from 1 October 2023 and will allow the use of a birth certificate as a single document for admission to an educational institution, issuance of licence, preparation. voting list, Aadhaar number, marriage registration or appointment to a government post.
RBI likely to provide update on Rs 2,000 notes
The Reserve Bank of India (RBI) had earlier stated that September 30, 2023 is the last day for exchange or deposit of withdrawn Rs 2000 notes, though the notes will continue to be accepted as legal tender after that day. While announcing the withdrawal, the RBI stated that it would determine the future status of banknotes based on the amount returned/deposited in banks.
Given this, the central bank is expected to provide an update on October 1.
New debit/credit card rules
From October 1, 2023, the Reserve Bank of India (RBI) has asked banks to offer cards across multiple networks and give customers the option to choose their preferred card network. Currently when someone applies for a debit or credit card, the network provider is normally determined by the card issuer.
First Published: 26 September 2023 12:13 IST