6 Crucial Changes from October 1: Deposit Rs 2,000 Notes to New TCS Rules

From the deposition of Rs 2,000 notes to the advent of new TCS regulations, a series of significant financial developments are poised to take effect as September draws to a close. Several noteworthy alterations are set to become operative in October, encompassing the enforcement of novel TCS guidelines and the cut-off date for the submission of candidates for Mutual Fund folios and demat accounts. Furthermore, it is essential to bear in mind that the deadline for depositing or exchanging Rs 2,000 notes is the 30th of September.

Here is an enumeration of five pivotal amendments to personal finance regulations, slated to commence on the 1st of October 2023:

TCS Regulations:

Commencing on the 1st of October, the new Tax Collection at Source (TCS) regulations will come into effect, assuming a paramount role for individuals with intentions of international travel, whether for business, education, or leisure. In addition, expenditures related to medical or educational purposes will incur a TCS rate of 5%, whereas credit card expenses exceeding Rs 7 lakhs in foreign jurisdictions annually will be subject to a substantial 20% TCS.

Exchange/Deposition of Rs 2,000 Notes:

The 30th of September, 2023, marks the ultimate date for the exchange or deposition of Rs 2,000 notes. Banks will entertain these notes up to the stipulated deadline, as ordained by the Reserve Bank of India; however, subsequent to this cutoff point, banks may exercise discretion in accepting these notes.

Aadhaar Mandate for Savings Accounts:

By the culmination of this month, investors partaking in small savings schemes such as the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Post Office Deposits, among others, are obligated to furnish their Aadhaar numbers to the respective post offices or bank branches. Failure to adhere to this critical deadline may result in the freezing of their modest savings assets.

SEBI Nomination Deadline:

Holders of eligible trading and demat accounts currently in possession must designate a beneficiary for their accounts no later than the 30th of September.

Nomination for Mutual Funds:

Investors are afforded until the 30th of September to nominate individuals for their extant mutual fund folios, even in cases where these holdings are jointly owned. A failure to do so will culminate in the suspension of debit transactions for these folios, commencing from the 1st of October.

Compulsory Birth Certificates for Government Employment:

In addition to financial considerations, it is imperative to note that, commencing on the 1st of October, 2023, the Registration of Births and Deaths (Amendment) Act of 2023 will mandate the possession of birth certificates for Aadhaar enrollment and government job applications, nationwide.