Five personal finance rule changes taking place from next month

Let’s take a look at five personal finance rule changes taking place from 1 October 2023

1) Mutual Fund folios nomination

The deadline for adding nominees for all the existing mutual fund folios, including jointly-held ones, has been set as 30 September, 2023, failing which the folios will be frozen for debits.

2) New TCS rule

Overseas expenses on credit cards exceeding ₹7 lakh will be subject to a 20 per cent TCS. However, if such expenses are incurred for medical or educational purposes, the TCS would be levied at 5 per cent. For those availing loans for overseas education, a lower TCS rate of 0.5 per cent would be levied above the ₹7-lakh threshold.

The Union Budget 2023-24 had hiked TCS rates to 20 per cent, from 5 per cent currently, on overseas tour packages and funds remitted under LRS (other than for education and medical purposes).

3) Sebi nomination deadline for demat, trading accounts

The deadline for existing eligible trading and demat account holders to nominate a beneficiary for their accounts will end on September 30.

“Based on the assessment of the trading as well as demat accounts in which choice of nomination details (i.e. furnishing of nomination or declaration for opting out of nomination) has not been updated and on the basis of representations received from the stakeholders, it has been decided that the provisions mentioned at para 7 of SEBI circular dated July 23, 2021, read with para 3 (a) of SEBI circular dated February 24, 2022, with regard to freezing of accounts shall come into force with effect from September 30, 2023 instead of March 31, 2023,” the market regulator mentioned in a circular dated 27 March.

4) Aadhaar for small savings account 

Investors of the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Post office deposits, and other small savings schemes must submit their Aadhaar number to the post office or bank branch by the end of this month. Missing this important deadline will result in getting their small savings investments frozen.

PAN and Aadhaar number has become mandatory for making investments in small savings schemes like PPF, SSY, Senior Citizens Saving Scheme (SCSS), etc. The Ministry of Finance issued a notification in this regard on 31st March 2023.

5) Exchange of ₹2000 banknotes

If you also have ₹2000 notes, then definitely deposit them by 30 September 2023. The Reserve Bank has set the deadline for exchanging ₹2000 notes till 30 September. Until now, there has been no report of extending this deadline

Birth certificates to become a single document for Aadhaar, govt jobs

Apart from these money changes, from next month (October 1, 2023), birth certificates to become a single document for Aadhaar, and govt jobs. The Registration of Births and Deaths (Amendment) Act, 2023 will come into force across the country from October 1, 2023.

Registration of Births and Deaths (Amendment) Act, 2023 allows 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.

Updated: 21 Sep 2023, 02:59 PM IST