As we step into the month of October, just three months away from 2021, the Indian Government has introduced many new rules that could surprise you, hence you must pay attention to.
The changed and updated rules ranging from Income tax, driving license, health insurance, TDS to credit and debit cards are going to affect the daily lives of all individuals. Thus it is essential you take note of them. Let’s get started.
Debit/Credit Card: No Automatic Facilitation Of International Transactions
Starting from October 1, i.e. today, the RBI has directed all the banks not to unnecessarily provide international facilities to their customers who apply for a credit or debit card. Customers will be provided with the facility only if they demand it themselves.
RBI’s new guidelines outline that banks must provide more control to customers over their financial activities. Banks must allow customers to choose to register for preferences, spending limits and other services related to online transactions. Based on what the customer opts in for and opts out of, they will be allotted the services. As a default option, all debit and credit card services will be enabled for transactions at domestic ATMs and PoS aka Point of Sale terminals only.
Health Insurance: Hike In Premiums
The health insurance industry will undergo a lot many changes starting from this month. Consumers who are hoping to get their hands on a health insurance plan should note that the premium paid on it is likely to go up by 2%-5%. It is based on the standardisation rules that are being introduced in this particular domain.
Tax Collected at Source
The new TCS aka Tax Collected at Source scheme begins today which makes it mandatory for every e-commerce operatory to levy 1 per cent tax deduction on sale of goods and services.
Corporate Tax Cut
Announced by Nirmala Sitharam, the Union Finance Minister, the corporate tax cut will start being implemented from this month.
Use Of Credit Cards At Petrol Pumps: No More Discounts
Beginning from this month onwards, the discounts that were introduced by various oil companies to encourage consumers to use digital payment methods is going to be cancelled for credit cards. Other modes of payments such as e-wallets and debit cards to be continued for now.
Home & Car Loans: Rates To Plummet
All banks have been directed to mandatorily link their retail and MSME loans to external interest rate benchmarks by the Reserve Bank of India (RBI). This indicates that rates for loans related to homes, cars and other personal needs will soon come down.
Pradhan Mantri Ujjwala Yojana
Government of India has enabled financially backward women to benefit off of the Ujjwala scheme until the previous month. Starting from October, GOI will not be giving out free LPG cylinders which were being given out as part of the pandemic relief scheme.
Driving Licence: No Physical Proof
From this month onwards, individuals wouldn’t be required to canary physical documentation of driving licence and registration. One can instead carry their soft copies in electronic version using DigiLocker or the m-Parivahan app.
Similarly, all foreign tour packages will attract 5% tax irrespective of the total amount. Also, all foreign remittence above Rs 7 lakh will also be subject to 5% tax.
All the above changes are applicable form this month onwards and experts believe that most of the new rules will have a direct impact on the consumers savings, albeit marginally. However, it would be interesting to see how consumers are going to react to such changes which are silently pushed.
Do you think such changes are the need of the hours considering the impact of pandemic on the economy of India that seems to be in doldrum for now? Do let us know your views in the comment section below.