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Rs. 2,000 note exchange & other personal finance changes in October: What you need to know

Beginning on October 1 of this year, consumers will notice a number of changes to their personal finances as the deadlines for adding nominees for trading, demat, and mutual fund folios expire on September 30, 2023.

The new TCS regulation on overseas spending will go into force in September, which may also be the final month for exchanging notes with a value of Rs 2,000.

As of October 1, the following changes will affect personal finances:

Adding nominees for every Mutual Fund already in existence

It was decided to extend the nomination period for all active mutual fund folios until September 30. Folios will be locked for subsequent debits.

new TCS regulations

If the user’s international credit card spending exceeds Rs 7 lakh starting on October 1 then a 20% TCS will apply. If expenses are incurred for medical or educational purposes, TCS will be applied at a rate of 5%. A lower TCS of 0.5% will be applied on borrowers who are taking out loans for international education once they cross the Rs 7 lakh mark.

Demat and trading account nomination deadline

Current holders of trading and demat accounts have until September 30 to nominate a beneficiary.

The market regulator stated in a circular that “Based on the assessment of the trading as well as demat accounts in which choice of nomination details (i.e. furnishing of nomination or declaration for opting out of nomination) has not been updated and on the basis of representations received from the stakeholders, it has been decided that the provisions mentioned at para. 7 of SEBI circular dated July 23, 2021, read with para. 3 (a) of SEBI circular dated February 24, 2021, shall apply to the trading as well as

Exchange of 2,000 rupee notes

The deadline for exchanging Rs 2,000 notes has been imposed by the Reserve Bank at September 30. If you still have any rupees two thousand notes, you must deposit them in the banks before the deadline.

birth certificates are required for government employment

Aside from financial reasons, birth certificates will be replaced with a single document for Aadhar and government jobs starting in October. On October 1, 2023, the Registration of Births and Deaths (Amendment) Act will go into effect.

Conclusion:-

Starting October 1, 2023, consumers will face several changes to their personal finances as deadlines for adding nominees for trading, demat, and mutual fund folios expire on September 30, 2023. The new TCS regulation on overseas spending will also apply in September, which may also be the final month for exchanging notes with a value of Rs 2,000. The nomination period for all active mutual fund folios will be extended until September 30, and folios will be locked for subsequent debits. If the user’s international credit card spending exceeds Rs 7 lakh, a 20% TCS will apply, while a 5% TCS will be applied for medical or educational expenses. Current holders of trading and demat accounts have until September 30 to nominate a beneficiary. The Reserve Bank has imposed a deadline for exchanging Rs 2,000 notes, and birth certificates will be replaced with a single document for Aadhar and government jobs starting in October.

Sunil Pandey
Sunil Pandey

The business professional who loves penning down his thoughts/ insights on business, entrepreneurship, & startups. His ability to break down complex business concepts into easy & concise write-ups makes him a wonderful author. He believes that writing is a powerful tool for communication and education.

Sunil Pandey
The business professional who loves penning down his thoughts/ insights on business, entrepreneurship, & startups. His ability to break down complex business concepts into easy & concise write-ups makes him a wonderful author. He believes that writing is a powerful tool for communication and education.

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