Nagpur: As September draws to a close, October 2023 is just around the corner, bringing with it several significant changes (effective from October 1st) that could have a direct impact on your finances. Let’s delve into these 5 important changes:
First Change: Starting from October, the prices of LPG cylinders may fluctuate within your household budget. Realistically, oil marketing companies revise LPG prices on the first day of each month. This means that the actual effect of these changes will be visible soon. However, before the commencement of October, the government has already reduced the subsidy on LPG cylinders by INR 200, which the public will have to bear in their costs. After this adjustment, companies will determine price changes based on market fluctuations. This will also likely affect the prices of CNG, PNG, and aviation turbine fuel (ATF).
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Second Change: The Tax Collected at Source (TCS) rules are set to come into effect from October 1, 2023. A significant change, TCS will impact various financial transactions. Specifically, these new rules will have implications for expenditures related to foreign travel, overseas stock investments, mutual funds, cryptocurrency investments abroad, and higher education abroad. Under the Reserve Bank of India’s Liberalized Remittance Scheme (LRS), an individual can currently remit up to $250,000 annually. Starting from October 1, 2023, a 20% TCS will be applicable if you send more than INR 7 lakhs in a financial year for reasons other than medical and education expenses.
Third Change: The INR 2,000 notes will cease to be legal tender. Regarding this change, the Reserve Bank of India had announced on May 19 that INR 2,000 notes would be phased out and withdrawn from circulation. Banks and regional offices will accept these notes, but the deadline for depositing or exchanging them is set until September 30, 2023, which is today. This means that these notes will no longer be considered valid starting from tomorrow. However, the central bank may announce further updates regarding the exchange or withdrawal process. As of August 31, 2023, 93% of the INR 2,000 notes had been returned, leaving approximately INR 24,000 crores still in circulation. In this context, the Reserve Bank may extend the deadline for exchanging these notes or invalidate them completely.
Fourth Change: The birth certificate is now a single document for various purposes. Another significant change, effective from October 1, 2023, is the consolidation of the birth and death registration process under the Births, Deaths, and Marriages (Amendment) Act, 2023. This means that the birth certificate will now be used for multiple purposes, including admissions to educational institutions, obtaining a new driving license, voter list registration, or government job appointments.
Fifth Change: There are changes in rules related to small savings schemes like the Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), and National Savings Certificate (NSC). Effective from October 1, 2023, these schemes will no longer be linked to an individual’s Aadhar card and PAN card details, and accounts of those who do not update these details may be frozen. The government has also encouraged Aadhar updates for these schemes on multiple occasions.
These changes, set to be implemented in October 2023, will undoubtedly have significant implications for various aspects of daily life and financial planning. It’s essential to stay informed and adapt to these modifications as they come into effect.
