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Today, with the beginning of October 2024, changes have been made in many rules related to money. Changes in regulations by the government will have a direct impact on insurance policies, mutual fund taxation and the financial sector. These changes are aimed at increasing transparency of the government and regulatory bodies and making the process easier for investors. Let us know about these important changes.
1. Commercial Gas Cylinder
From today, the expensive 19 kg commercial cylinder has become costlier by Rs 48.50. Its price in Delhi has increased by Rs 48.50 to Rs 1740. Earlier it was available for Rs 1691.50. In Kolkata, it is available at ₹1850.50, which is Rs 48 more than its earlier price of ₹1802.50. The price of cylinder in Mumbai has increased from Rs 1644 to Rs 48.50 to Rs 1692.50. Cylinder is available in Chennai for Rs 1903. However, there is no change in the prices of 14.2 kg domestic gas cylinder. It is available for Rs 803 in Delhi and Rs 802.50 in Mumbai.
2. Changes in PPF and small savings schemes
Now only one PPF account can be opened for a minor. If more than one account is opened, it will be treated as irregular and only 4% interest will be given on it. Also, interest on PPF accounts of NRIs (Non-Resident Indians) will stop from October 1.
3. Regulation related to Aadhar Card
The provision allowing mentioning of Aadhaar enrollment ID instead of Aadhaar number is proposed to be discontinued in the Union Budget 2024. The purpose of this decision is to eliminate misuse and duplication of PAN. From October 1, 2024, individuals will not be able to mention their Aadhaar enrollment ID in application forms for PAN allotment and income tax returns. According to the Budget, eligible persons under section 139AA of the Act are required to quote Aadhaar number in PAN application forms and income tax returns from July 1, 2017.
4. More transparency for loans
RBI has directed that from October 1, all banks and NBFCs (non-banking financial companies) should issue Key Fact Statements (KFS) to borrowers, clearly detailing all charges and terms. This will help the borrower avoid hidden charges and enhance financial understanding.
5. Health insurance reform
IRDAI has reduced the waiting period for health insurance policies for pre-existing diseases from 4 years to 3 years. Also, the moratorium period has now been reduced from 8 years to 5 years, allowing policyholders to file claims faster.
6. High dedication value
If life insurance policy holders surrender their endowment policies early, they will now be refunded more than before. Last year also partial refund was decided.
7. Relief for mutual fund investors,
No more 20% TDS (tax deducted at source) on repurchase of mutual fund units. This change will reduce the tax burden on mutual fund investors.
8. Direct Tax Dispute Se Vishwas Scheme
The government has launched the Direct Tax Vivad Se Vishwas Scheme, 2024, through which tax disputes can be resolved immediately. Taxpayers can avail the benefit of this scheme by declaring their old tax related cases or correct income before 31st December.
9. Change in share buyback tax
From now on, investors will have to pay tax as dividend income on the amount received from share buyback of companies. This will affect high income group investors.
10. Bonus Share
SEBI has reduced the trading time of bonus shares from 2 weeks to 2 days, to facilitate investors to trade faster.
