Mutual Funds, new TCS rates to demat accounts: Five personal finance rule changes taking place from next month
Personal Finance rule changes from 1 October 2023: The deadline for adding nominees for mutual fund folios, demat, and trading accounts is 30 September 2023. New TCS rule on overseas expenses to come into effect from next month. This could also be the last month for exchanging ₹2,000 notes.
The deadline for adding nominees for all the existing mutual fund folios, including jointly-held ones, has been set as 30 September, 2023, failing which the folios will be frozen for debits. Overseas expenses on credit cards exceeding ₹7 lakh will be subject to a 20 per cent TCS. However, if such expenses are incurred for medical or educational purposes, the TCS would be levied at 5 per cent.
For those availing loans for overseas education, a lower TCS rate of 0.5 per cent would be levied above the ₹7-lakh threshold. The Union Budget 2023-24 had hiked TCS rates to 20 per cent, from 5 per cent currently, on overseas tour packages and funds remitted under LRS (other than for education and medical purposes). The deadline for existing eligible trading and demat account holders to nominate a beneficiary for their accounts will end on September 30.
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