Debit, Credit Cards, 20% TCS, Small Savings Schemes: Check Major Financial Rule Changes From October 1

The third quarter of the financial year 2023-24 has started from today, October 1. Though deadlines for some of the financial activities that were earlier ending September 30 have been extended, there are changes that have become effective today. Check major financial changes effective October 1.

20% TCS On Foreign Remittance

LRS (liberalised remittance scheme) spending above Rs 7 lakh would attract 20 per cent TCS from October 1.

On the purchase of overseas tour programme packages, no TCS will be applicable on payments up to Rs 7 lakh. However, above Rs 7 lakh, 20 per cent would be levied from October 1. Earlier, there was a TCS of 5 per cent without any threshold.

On medical treatment and education, no TCS will be levied till Rs 7 lakh spending. However, a 5 per cent TCS will be applicable in case of spending above that. Earlier also, the rates were the same. On overseas education, a lower TCS rate of 0.5 per cent would be levied above the Rs 7 lakh threshold.

On LRS for other purposes, no TCS will be applicable till Rs 7 lakh and there will be a 20 per cent TCS thereafter. Earlier, there was no TCS till Rs 7 lakh, and there was a 5 per cent above Rs 7 lakh.

However, transactions through international credit cards while being overseas would not be counted as LRS and hence would not be subject to TCS.

Aadhaar Card, PAN Card For Small Savings Schemes

Individuals who have opted to invest in small savings schemes such as public provident fund (PPF), senior citizens savings scheme (SCSS) and national savings certificate (NSC), were required to submit their PAN and Aadhaar card documents by September 30, 2023. Failure to do the same may result in the suspension of the accounts until the documents are provided.

On Friday, the government hiked the interest rate on SCSS by 20 basis points to 6.7 per cent for October-December 2023.

Debit, Credit Card Rules

The Reserve Bank of India (RBI) has proposed that debit and credit card holders should be given the option to select the network of their choice. The new rule will become effective from October 1, 2023. Currently, the network is generally determined by the card issuer.

FD Deadline

Indian Bank has extended the “Ind Super 400” and “Ind Supreme 300 days” special fixed deposits with higher interest rates. The deadline has been extended to October 31, 2023.

Birth Certificates

The Registration of Births and Deaths (Amendment) Act, 2023, has become effective from October 1, 2023. It will allow the use of a birth certificate as a single document for admission to a school, issuance of a driver’s license, preparation of a voter list, Aadhaar number, marriage registration, or appointment to a government job.

Apart from these, the deadline for depositing and exchanging the Rs 2,000 notes has been extended until October 7. The deadline for appointing a nominee for mutual funds and demat accounts has also been postponed till January 1.