Top 5 financial changes starting next month: PAN and Aadhaar for modest savings programs will be required for mutual funds
Changes to personal finances will take effect starting next month: With the start of October, one would also begin a new quarter. With the start of a new quarter, many new regulations that will have an immediate influence on an investor's personal finances take effect on October 1, 2023.
These financial adjustments include the mutual fund folio nomination deadline, the new TCS rule, and other related issues. One carrying 2000 notes will no longer be eligible to trade starting on October 1, 2023, as the deadline for exchanging 2000 notes expires on September 30, 2023
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The top 5 rule changes that could affect your personal finances are listed below:
Nomination of mutual funds
The mutual fund folios will be frozen for debits if nominees are not added by 30 September 2023 for all existing mutual fund folios, including those that are jointly held.
New TCS policy
A 20% TCS will apply to credit card overseas charges that exceed 7 lakh. However, the TCS would be charged at 5% if such costs were incurred for medical or educational needs. A lower TCS rate of 0.5% will be applied to borrowers who are taking out loans for abroad schooling until they exceed the $7 lakh mark.
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Demat account nomination
Current holders of eligible trading and demat accounts have until September 30 to designate a beneficiary for their accounts.
It has been determined that the provisions outlined in para. 7 of SEBI circular dated July 23, 2021, read with para. 3 (a) of SEBI circular had relationships with February 24, 2022, regarding freezing of accounts, shall take effect. This decision was made based on the evaluation of the trading and demat accounts in which the selection of nomination details (i.e. furnishing of acceptance or declaration for opting out of nomination) have not been updated and on the basis of images received from the stakeholders.
PAN and Aadhar are required for small savings programs.
By the end of this month, investors in small savings programs such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Post Office Deposits, and others must provide their Aadhaar numbers to the post office or bank branch. Their little savings assets will be frozen if they miss this crucial date.
For making investments in minor savings programs like PPF, SSY, Senior Citizens Saving Scheme (SCSS), etc., PAN and Aadhaar numbers are now required. On March 31, 2023, the Ministry of Finance released a notification in this regard.
Change for 200 notes
Deposit your 2000-yen notes by September 30, 2023, if you have them. The deadline for exchanging 2000-dollar bills has been extended by the Reserve Bank until September 30. No reports of this deadline being extended exist as of yet.
