As September comes to a close, it’s time to prepare for several financial changes set to take effect in October 2023. These changes will directly impact your finances, so staying informed is crucial. Here are five key changes to watch out for:
1. LPG Price Adjustment:
As is the norm, the beginning of October may witness fluctuations in LPG prices, affecting household budgets. Oil marketing companies routinely revise LPG prices on the first of every month. While the government recently reduced LPG cylinder prices by INR 200, all eyes will be on the price change scheduled for October 1, 2023. Additionally, prices of CNG-PNG and Air Turbine Fuel (ATF) may also see adjustments.
2. New TCS Rules:
Starting October 1, 2023, new Tax Collected at Source (TCS) rules will come into play, impacting expenses related to foreign travel. These rules will affect foreign stock investments, mutual funds, cryptocurrency investments abroad, and individuals traveling overseas for higher education. Under the Reserve Bank of India’s Liberalized Remittance Scheme (LRS), individuals can send up to $250,000 abroad annually. From October onwards, a 20% TCS will be levied on remittances exceeding INR 7 lakh for purposes other than education and medical.
3. Discontinuation of INR 2,000 Notes:
The Reserve Bank of India (RBI) announced the withdrawal of INR 2,000 notes from circulation on May 19, with a deadline of September 30, 2023, for depositing or exchanging these notes at banks and RBI regional offices. Starting October 1, 2023, these notes will no longer be valid for transactions.
4. Birth Certificate Simplification:
Effective October 1, 2023, the Birth and Death Registration (Amendment) Act, 2023, will simplify the use of birth certificates. A birth certificate can now serve as a single document for various purposes, including school admissions, obtaining a new driving license, voter registration, linking with Aadhaar, marriage registration, and government job applications.
5. Rules on Small Savings Schemes:
For individuals investing in government savings schemes such as the Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), and National Savings Certificate (NSC), October 1, 2023, is a crucial date. Those who haven’t updated their Aadhaar and PAN card details with these accounts may face account suspension. The government has repeatedly urged individuals to update their Aadhaar details for these schemes.
FAQs:
- When will the new TCS rules be implemented?
- The new TCS rules will be implemented from October 1, 2023.
- Till when can the INR 2,000 notes be exchanged or deposited?
- The INR 2,000 notes can be exchanged or deposited until September 30, 2023.
- What changes are expected in LPG prices from October?
- While the government has recently reduced LPG prices by INR 200, further changes, if any, will be known on October 1, 2023.
- Why is October 1, 2023, significant for small savings scheme investors?
- Investors in small savings schemes need to ensure their Aadhaar and PAN card details are updated by October 1, 2023, to avoid account suspension.
These changes emphasize the importance of staying informed and complying with evolving financial rules. It is advisable to keep an eye out for any further announcements or clarifications from the relevant authorities regarding these changes.
