6 Upcoming Personal Finance Changes: How Do They Affect You?

New TCS Rule for Foreign Remittances

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

The Union Budget 2023–24 has hiked TCS rates to 20% from 5% across the country.

This rule applies to tour packages and funds remitted under LRS (other than for education and medical purposes).

Sebi Nomination Deadline for Demat and 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 the choice of nomination details (i.e., furnishing of nomination or declaration for opting out of nomination) has not been updated and based on representations received from the stakeholders, it has been decided that the provisions mentioned in para 7 of SEBI circular dated July 23, 2021, read with para 3(a) of SEBI circular dated February 24, 2022, concerning the 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 March 27.

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 numbers have become mandatory for investing in small savings schemes like PPF, SSY, Senior Citizens Saving Scheme (SCSS), etc. The Ministry of Finance issued a notification in this regard on March 31, 2023.

Exchange of ₹2000 Banknotes:

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

Mutual Fund Folios Nomination:

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

New Debit/Credit Card Rules:

Starting from October 1, 2023, the Reserve Bank of India (RBI) has asked banks to offer cards on multiple networks and give customers the option to select their preferred card network. Currently, when someone applies for a debit or credit card, the network provider is normally determined by the card issuer.


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