Starting from October 1, 2023, several significant changes will impact your financial life. The deadline for adding nominees to your mutual fund folios, demat accounts, and trading accounts is set to conclude on September 30, 2023. Failing to meet this deadline will result in the freezing of your folios for debits.
Furthermore, a new Tax Collected at Source (TCS) rule concerning overseas expenses will come into effect next month. If your overseas credit card expenses exceed Rs 7 lakh, you’ll be subject to a 20% TCS from October 1. However, for expenses related to medical or educational purposes, the TCS rate will be 5%. Individuals availing loans for overseas education will face a lower TCS rate of 0.5% above the Rs 7-lakh threshold.
The Union Budget 2023-24 raised TCS rates from 5% to 20% for overseas tour packages and funds remitted under LRS, except for education and medical purposes.
Additionally, the deadline for nominating beneficiaries for existing trading and demat accounts will be September 30. This decision, originally scheduled for March 31, was revised based on account assessments and stakeholder feedback.
For investors in the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), post office deposits, and other small savings schemes, submitting your Aadhaar number to the post office or bank branch by September 30 is crucial. Failure to meet this deadline will result in the freezing of your small savings investments.
If you still possess Rs 2000 notes, ensure you deposit them in banks by September 30, 2023, as the Reserve Bank has set this date as the deadline for their exchange.
Beyond financial matters, birth certificates will become a single document for Aadhaar and government job applications starting October 1, 2023, with the implementation of the Registration of Births and Deaths (Amendment) Act, 2023.