Intro: From October 1, i.e. today, many types of financial rules including health insurance, retail loans, share buyback, bonus shares are going to change which will have a direct impact on your life. After the instructions of RBI, it will be mandatory for banks and non-banking financial companies (NBFCs) to give details of key facts to customers taking retail loans from October 1. Read this report of Business Desk about these changes.
Intro: From October 1, i.e. today, many types of financial rules including health insurance, retail loans, share buyback, bonus shares are going to change, which will have a direct impact on your life. Read this report of Business Desk regarding these changes.
Clear information will be available regarding the cost of retail loan
After the instructions of RBI, it will be mandatory for banks and non-banking financial companies (NBFCs) to give details of key facts to the customers taking retail loans from October 1. This will give customers clear information about the total cost of the loan.
According to RBI, this statement should be in simple form and it should mainly contain information about the fees and other charges related to the loan. Also, this information should be given to the customers in an easy to understand language.
More premium will be available on policy surrender
Now policyholders will get more money on insurance policies. According to the insurance regulator, insurance companies will have to pay money even if the policy is surrendered after one year. Earlier, no money was given on surrendering the policy after one year.
Apart from this, the maximum waiting period for health insurance purchased from October 1 will be three years. Till now this period was four years. The period of not challenging claims on grounds other than misrepresentation and fraud has been reduced from eight years to five years.
20 percent tax will be levied on share buyback
After October 1, 20 percent tax will be levied on shareholders participating in the share buyback of companies. Till now this tax was levied on companies. According to the new rules, the process of buyback will be considered as dividend and the amount received from it will be added to the total income of the shareholders and tax will be levied. Apart from this, startup employees selling the shares received from the company will also have to pay tax.
Trading in bonus shares will be possible after two days
From October 1, trading (buying and selling) in bonus shares given by companies will start two days after the record date. Currently, it used to take about two weeks to trade bonus shares.
20% TDS will not be levied on repurchasing mutual fund units
From October 1, 20% TDS (Tax Deducted at Source) will not be levied on buying units of mutual funds or Unit Trust of India (UTI).
Finance Minister Nirmala Sitharaman had announced this in the budget presented in July. This step has been taken to reduce the tax burden on investors.
Apply in Vivaad se Vishwas 2.0
Application can be made from October 1 in Vivaad se Vishwas 2.0 scheme launched to settle pending tax disputes. This scheme has been launched with the aim of reducing the number of tax related cases. To avail the benefits of this scheme, application can be made till 31 December 2024.
Such PPF accounts of NRIs will be closed
Non-resident Indians (NRIs) are allowed to invest in Public Provident Fund (PPF) accounts. It is mandatory for the account holder to inform about being an NRI while opening a PPF account.
The accounts of those account holders who have not informed about being NRI will be closed from October 1. The amount deposited in these accounts will get interest at the rate available on post office savings account till 30 September 2024. After October 1, no interest will be paid on the amount deposited in these accounts.