Beginning October 1, a slew of changes will come into effect that may have an impact on your finances. Here are detailed all such changes for your know-how:
1. 5% taxes on foreign remittances:
On foreign remittance, there will be tax collection at source at the rate of 5 percent. Nonetheless, if the funds are remitted from a loan secured for higher education, TCS shall be 0.5% of the remitted sum.
Read more on TCS on foreign remittance from October 1 here.7.
2. New Tax Collected at Source (TCS) norms:
The tax department has notified guidelines for new tax collection at source (TCS) norms under which e-commerce companies will be required to deduct 1% tax on sale of goods and services. The TCS provisions will kick off from October 1 and for the same the Finance Act, 2020 included a new Section 194-O to the Income Tax Act 1961.
3. Changes in Motor vehicle rules:
Several amendments in Central Motor Vehicle Rules 1989 will come into effect from October 1 which the Ministry of Road Transport & Highways (MoRTH) has only lately notified.
Henceforth there shall be no physical inspection of vehicular documents if found validated via electronic mode. And this shall be applicable even in a case if there is an offence committed that necessitates seizure of any such documents. All such DLs which have been revoked or are disqualified by the authority will be recorded chronologically in the IT portal.
Drivers can hence upkeep their vehicle-related documents on government's portal such as Digilocker or m-parivahan.
4. Standardization of health insurance cover:
The insurance regulator IRDAI in order to get rid of all the doubts has directed insurance players to standardize exclusions- medical ailments or diseases not covered under a health cover. Now the scope of pre-existing diseases includes any health condition that has been diagnosed 48 months before the issuance of the health policy as well as any medical condition that develops within 3 months of policy issuance. Furthermore, treatment for stress, any mental illness shall also be covered under health insurance.
5. Interest rate on home, personal, car loan will fall:
The RBI has asked banks to mandatorily link their retail loan products including car, home and personal loan as well as MSME loans to external benchmark rate which will result in lowering of interest rate on different loan products.
6. New credit/ debit card guidelines by RBI effective October 1:
To render debit and credit card transactions safer at the time when digital transactions have been gaining pace, RBI has come up with fresh guidelines for these instruments that will come into effect from Oct 1. Accordingly cardholders, can escape fraud by switching on or off the different functionalities that they do not need such as ATM, PoS, online or contactless transaction. Also, they can set transaction amount limit for the transactions they carry out.
7. LPG connection will not be free
The scheme to avail free gas cylinders under Pradhan Mantri Ujjwala Yojana (PMUY) ends on September 30. Earlier in July the Union Cabinet extended the facility to avail free gas cylinders under the scheme till September end.
8. Television purchase to get costlier:
This is as the earlier allowed 1-year duty exemption on open cell panels ended on September 30, TV sets are set to become expensive. From October 1, a 5% import duty will be levied on open cell panels. Under the 'Atmanirbhar Bharat' programme, the centre is keep on augmenting domestic manufacturing capacity for open cell panels such that their imports can be minimised.