Major Changes From October 1: Five New Rules And Regulations That Will Impact Your Daily Life

Many new rules will come into effect from October 1, 2023. These changes may impact people's everyday routines, ranging from alterations in the utilisation of birth certificates to the implementation of new Tax Collected at Source (TCS) regulations. Therefore, it is important that you must keep yourself abreast of these notable changes to avoid any inconvenience confusion or difficulty in the future.

New TCS Rule:

In a significant development, a 20% Tax Collection at Source (TCS) will be imposed when credit card expenditures for overseas purposes exceed Rs 7 lakh. However, for medical or educational expenses, the TCS rate will be reduced to 5%. Those obtaining loans for overseas education will enjoy a lower TCS rate of 0.5%, but this rate applies only after crossing the Rs 7-lakh threshold. The Union Budget 2023-24 increased the TCS rates for overseas tour packages and funds remitted under LRS, except for education and medical purposes, from the current 5% to 20%.

Mutual Fund Folios Nomination:

The deadline for designating nominees for all existing mutual fund folios, including jointly-held ones, is September 30, 2023. Failing to do so by this date will result in restrictions on debit transactions for these folios.

SEBI Nomination Deadline for Demat and Trading Accounts:

The cutoff date for eligible existing trading and demat account holders to appoint a beneficiary for their accounts is September 30th. A circular issued by the market regulator on March 27 mentioned that the provisions related to freezing of accounts will come into effect from September 30, 2023, instead of the previously set date of March 31, 2023.

Exchange of Rs 2,000 Banknotes:

If you possess Rs 2000 notes, it's advisable to deposit them by September 30, 2023. The Reserve Bank has set this date as the deadline for exchanging Rs 2000 notes, and as of now, there have been no reports of an extension to this deadline.

Birth Certificates as Single Document for Educational Institution Admissions:

Starting from October 1, 2023, the Registration of Births and Deaths (Amendment) Act, 2023 will be in effect nationwide. This amendment allows the use of a birth certificate as a sole document for various purposes, including admission to educational institutions, obtaining a driver's license, compiling voter lists, acquiring an Aadhaar number, registering marriages, and securing government job appointments.