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.
2. 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 All such DLs which have been revoked or are disqualified by the authority will be recorded chronologically in the IT portal.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.
3. 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.
4. 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.
Also, the Ministry of Home Affairs (MHA) might lift curbs on some more activites, hence announcing more relaxations from October 1 like the West Bengal government has allowed re-opening of cinemas and open-air theaters from October.