 "Lower FD rates to 20% TCS: Money changes from 1 October you should know of")
Debit card, credit card rule
From 1 October, all credit card, debit card and prepaid card customers in India will be able to port their networks. Just as you can port your mobile networks between Vodafone, Jio and Airtel, now card users would be able to port from Visa to MasterCard to RuPay or any other network or vice-versa of their choice.
The Reserve Bank of India has issued a new circular that empowers debit, credit, and prepaid card users to select their preferred card network, which challenges the existing practice where card network options are predetermined by agreements between issuers and networks.
Card network portability enables consumers to transfer their card accounts from one network to another, similar to how we can switch mobile service providers while retaining the same phone number. With card network portability, cardholders have the flexibility to migrate to a different payment network while keeping their existing card accounts, balances, and credit history intact.
20% TCS kicks in on foreign remittance
The higher rate of 20% TCS to be levied on spending above Rs 7 lakh on foreign tour packages and the liberalised remittance scheme (LRS) will kick in from October 1.
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Currently, funds transferred overseas under the Reserve Bank’s LRS attract 5% tax collection at source (TCS) on amounts exceeding Rs 7 lakh. The TCS rate will go up to 20% from October 1. An assessee can take credit of the TCS amount paid at the time of filing income tax returns for the relevant assessment year. TCS of 5% will continue to be levied on annual expenses exceeding Rs 7 lakh towards medical treatment and education.
These changes are important for anyone planning international travel, investing in foreign stocks, mutual funds, cryptocurrencies abroad, or pursuing higher education overseas.
Lower FD rates
HDFC Bank’s special edition fixed deposit interest rates will be reduced from October 1, 2023
HDFC Bank introduced limited special edition fixed deposits (FDs) offering higher interest rates to their customers on May 29, 2023. Under the special edition fixed deposit, the bank offers 7.20 percent interest on fixed deposits maturing in 35 months and 7.25 percent interest on deposits maturing in 55 months. Senior citizens will receive an extra 0.5% on deposits.
IDBI launched a new FD scheme named Amrit Mahotsav FD with terms of 375 and 444 days. The deadline to invest in these special FD is October 31, 2023.
Small savings schemes to freeze if Aadhaar, PAN not submitted
Individuals who have opted to invest in small savings schemes such as Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), National Savings Certificate, among others must mandatorily submit their Permanent Account Number (PAN) and Aadhaar card documents by September 30, 2023. Failure to do the same may result in the suspension of the accounts from October 1 until the documents are provided, as per the government's notification.
Birth certificates to become a single document for Aadhaar, govt jobs
Apart from these money changes, from next month (October 1, 2023), birth certificates to become a single document for Aadhaar, and govt jobs. The Registration of Births and Deaths (Amendment) Act, 2023 will come into force across the country from October 1, 2023.
Registration of Births and Deaths (Amendment) Act, 2023 allows the use of a birth certificate as a single document for admission to an educational institution, issuance of a driving licence, preparation of voter list, Aadhaar number, registration of marriage or appointment to a government job.
Rs 2000 note deadline
Rs 2000 note deadline
The Reserve Bank of India (RBI) is likely to give time till October end for returning Rs 2,000 currency notes to banks. The RBI had initially set September 30 as the deadline for withdrawing all Rs 2,000 currency notes from the system. T
The central bank said on September 1 that 93 percent of Rs 2000 notes in circulation, had returned to the banking system. The Rs 2,000 notes in circulation at the close of business on August 31 stood at Rs 0.24 lakh crore, it said.
The central bank said on September 1 that 93 percent of Rs 2000 notes in circulation, had returned to the banking system. The Rs 2,000 notes in circulation at the close of business on August 31 stood at Rs 0.24 lakh crore, it said.