Major Financial Changes Set To Impact September 2023

Financial changes or regulations refer to the rules, laws, policies, and practices put in place by governments, regulatory bodies, or financial institutions to govern and control various aspects of the financial system. These changes can encompass a wide range of areas within the financial industry, including banking, investment, insurance, taxation, and more. The month of September is going to witness some of these financial changes. Let's examine significant financial changes and assess their potential impact on you.

• AADHAR UPDATE

The opportunity to update information on your Aadhaar card without incurring charges is set to conclude this month. The Unique Identification Authority of India (UIDAI) initially extended the deadline from June 14 to September 14, 2023. This initiative primarily targets individuals who received their Aadhaar cards 10 years ago and have not completed any updates since then.However, it's important to note that this service is free exclusively through the myAadhaar portal, while physical Aadhaar centers impose a fee of Rs 50 for the same service.Commencing on September 15, the process of updating your Aadhaar card will incur charges at the same rate, including on the myAadhaar portal.

• NOMINATION IN TRADING & DEMAT ACCOUNT

The Securities Exchange Board of India (SEBI) declared an extension of the deadline for trading and demat account holders to either nominate or choose to opt-out of a nomination. The original deadline of March 31 has been prolonged to September 30.

• NOMINATION IN MUTUAL FUND

Mandatory nomination or opting-out confirmation has already been enforced for new mutual fund (MF) investors, specifically for folios initiated from October 1, 2022. For investors with folios established prior to October 1, 2022, compliance with the nomination requirement is essential by September 30. This entails either submitting nominee information or issuing an opt-out declaration.

It's crucial to emphasize that failing to register the necessary details within the prescribed deadlines will result in the inability to execute transactions such as redemptions, systematic withdrawal plans (SWP), switches, or systematic transfer plans (STP) in the relevant folios starting from October 1, 2023.

• EXCHANGE OF RS.2000 NOTES

September represents the final opportunity for individuals to exchange ?2,000 notes. In May, the Reserve Bank of India (RBI) had announced that individuals could exchange or deposit these notes into their bank accounts until the specified date. According to the central bank, individuals can deposit or exchange these notes for lower denomination currency until September 30, with a limit of ? 20,000 at a time.    

• AXIS BANK CHARGING HIGHER FEES ON ITS MAGNUS CREDIT CARDS

Starting September 1, users of Axis Bank's Magnus credit card will experience an increase in their costs. The bank has communicated alterations to the card's terms and conditions. The most substantial adjustment is the modification in the annual fee, which has been elevated from ? 10,000 (plus GST) to ? 12,500 (plus GST). Furthermore, there have been revisions to the benefits accompanying the card.

• INVESTMENT IN SPECIAL HIGH-RATE FDs

Following the rise in repo rates since May 2022, numerous banks initiated the upward adjustment of their fixed deposit (FD) rates and introduced special FD schemes tailored to specific investment durations, catering to both regular and senior citizens.Investors may find that September marks the potential conclusion  for investing in special fixed deposit (FD) schemes introduced by certain banks.

• SUBMISSION OF PAN AND AADHAR FOR SMALL SAVINGS SCHEMES

Starting from the commencement of the current fiscal year, the Ministry of Finance enforced a mandate requiring the Permanent Account Number (PAN) and Aadhaar card for investments in small savings schemes namely  Public Provident Fund (PPF), Post Office Saving Scheme, and Senior Citizens Saving Scheme (SCSS). Existing subscribers are required to submit their Aadhaar number by September 30, and failure to do so will result in the freezing of their accounts.

• SECOND ADVANCE TAX INSTALLMENT

A person who derives their primary income from a salary but also earns from various other sources like interest from deposits, rental income, capital gains, and more may be subject to advance tax obligations. Therefore, it is essential to evaluate your advance tax liability. As per the Income Tax Act of 1961, any individual whose anticipated tax liability for the fiscal year amounts to Rs 10,000 or higher, factoring in tax deductions and collections at the source (TDS and TCS), must fulfill their advance tax obligation. The deadline for paying advance tax is set for September 15th. Failure to make timely advance tax payments or delays in doing so will result in the imposition of interest penalties on the outstanding tax amount.

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