BackMutual funds to mandatory PAN, Aadhaar for small saving schemes: Top 5 financial changes from next month
New personal finance rules from 1st October 2023 include mutual fund nomination, TCS on overseas expenses, and more
PremiumPersonal finance changes from next month: With the beginning of October month, one would be entering into new quarter as well. With the beginning of new quarter, a good number of new rules are getting effective from 1st October 2023 that would directly impact perfonal finance of an investor.
These financial changes include mutual fund folio nomination, new TCS rule, deadline for nomination in demat account, etc. From 1st October 2023, one carrying ₹2000 notes won't be able to exchange as deadline for ₹2000 note exchange ends on 30th September 2023.
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Here we list out top 5 rule changes that may imapct your personal finance:
Mutual fund 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.
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.
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Nomination in demat account
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," SEBI mentioned in a circular dated 27 March.
PAN, Aadhar mandatory for small saving schemes
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.
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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.
₹200 note exchange
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.
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