As September ends, it’s vital to know about the crucial changes in personal finance and deadlines in October. These changes can significantly affect your financial situation. Here are the top five changes from October 1, 2023, including new Tax Collection at Source (TCS) rules and deadlines for nominating beneficiaries for Mutual Fund folios and demat accounts.
Starting October 1, 2023, the new Tax Collection at Source (TCS) rules will be implemented. These changes are significant for individuals planning international travel for studies, business, or leisure. Under the new rules:
Credit card expenses exceeding Rs 7 lakh in foreign countries annually will be subject to a 20 per cent TCS. Costs related to medical or educational purposes abroad will incur a TCS of five per cent. These TCS rules are designed to monitor high-value foreign transactions and ensure tax compliance. If you have overseas expenditures in your plans, it's crucial to understand these rules and their implications on your finances.
Investors with existing mutual fund folios, including jointly-held ones, must file their nominees by September 30. Failing to do so will result in freezing these folios for debit transactions starting October 1. Nomination ensures that the intended beneficiary can access the investments without complications in the event of the investor's demise.
The last date to deposit or exchange the now-defunct Rs 2,000 currency notes is September 30, 2023. Following this deadline, banks may no longer accept these notes. It's essential to check your old currency holdings and take action before the cutoff date to avoid losing the value of these notes.
For investors in small savings schemes like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and Post Office deposits, submitting Aadhaar details is mandatory. This must be done at the respective banks or post offices by the end of September. Failing to meet this deadline can result in your investments being frozen.
Staying informed about these October personal finance changes and deadlines is crucial to avoid potential financial disruptions. Mark your calendar, take the necessary actions, and ensure your financial affairs are in order. Doing so will safeguard your investments and stay on the right side of tax regulations, ultimately contributing to your financial well-being.
