PF changes from October 1: New TCS rules, birth certificate single document for multiple purposes and more

A number of finance-related changes will come into effect this October. The changes – from new tax collection at source (TCS) rules to birth certificates becoming a single document for various purposes like Aadhaar and government jobs – will be effective from October 1 across the country. Take a look at how they will impact you:

TCS rules

The government has announced the implementation of new rule of tax collection at source (TCS) from October 1. The new rule will be applied on several financial transactions which include overseas expenses that will impact people planning abroad trips, investing in foreign stocks, mutual funds, crypto and pursuing higher international education.

In the Finance Bill 2023, the government had raised TCS from 5 percent to 20 percent for remittance under the Liberalised Remittance Scheme (LRS) and overseas tour packages. It also removed the threshold of Rs 7 lakh for TCS on LRS.

Small savings accounts to be suspended if Aadhaar not submitted

Current holders of small saving schemes like the Senior Citizens Savings Scheme (SCSS), Public Provident Fund (PPF), National Savings Certificate (NSC), or other post office plans are required to provide the Aadhaar number to the bank branch or post office by September 30, failing which, the accounts will be suspended on October 1.

Birth certificates to become a single document for Aadhaar, government jobs, others

The Registration of Births and Deaths (Amendment) Act, 2023 will be effective from October 1, 2023. This will allow birth certificate to be used as a single document for various purposes – driving licence, admission to an educational institution, Aadhaar, voter list, marriage registration or appointment to a government job.

Update on Rs 2,000 notes

The RBI is expected to provide an update on October 1 regarding the future status of the Rs 2,000 currency notes. The central bank had given people time till September 30 to exchange or deposit the Rs 2,000 currency notes at banks after it ordered withdrawal of the notes from circulation in May. Earlier this month, the central bank said that 93 percent of the Rs 2,000 currency notes were either deposited at or exchanged with banks.