List of Rules changing from September 1
LPG CYLINDER PRICE DECREASE
The government made a significant decision giving relief to the common man by lowering LPG monthly prices. The new prices will come into effect from September 1, 2023. Recently, the Central Government announced a reduction of Rs 200 in the price of 14.2 kg cylinders throughout the country.
IPO LISTING DATES REDUCED
Security Exchange Board of India (Sebi) took a significant step in the Initial Public Offering (IPO) listing. It reduced the IPO listing from September 1, 2023. The time limit for listing shares in the stock market has been reduced to half, i.e., three days from six days. Sebi introduced the company’s stock on the stock market after the IPO concluded. This new change is voluntary from September 1, but this will become mandatory post-December 1, 2023.
LAST ADHAR DATE UPDATION OPPORTUNITY
Unique Identification Authority of India (UIDAI)’s free update facility to update their Aadhar information will come to an end on September 14. This is the final three-month extension from June 14 to update their Aadhar Card for free.(PPF,Post Office etc Small Saving schemes)
SALARY OF EMPLOYEES WILL INCREASE
The good news for all the employed people is that the salary rules for employed people will change from the first day of September month. With the implementation of the new rules, the take-home salary of the employed person will increase. This rule will benefit those employees who have a house to live in on behalf of the employer, and there is some deduction from their salary as the Rent-Free Accommodation rules are going to change from September 1, 2023.
New income tax rules for these salaried taxpayers: The income tax department has announced major relief to taxpayers, availing company-provided rent-free homes. It has lowered the tax for employees staying in such accommodations. The new rule comes into effect from today, September 1, 2023
What is perquisite? The value of rent-free provided to an employee by the employer is taxable as prerequisite.
What is RFA? “Rent-free accommodation is a perquisite given to employees by the employer where an employee gets a place to live from their employer without paying much or anything at all. It’s a work-related benefit that’s part of the employee’s income and is taxed under ‘Salaries’,”
How new income tax rules will impact the Employee? The taxable value of rent-free accommodation will be reduced which means employees will pay less tax resulting in an increase in their take-home salary.
“Employees who stay in accommodation, owned/rented by the employers, rent-free, could see a drop in the taxable perquisite value thereby reducing the tax burden,which would enable them to get a bit more money in their hand
TCS
Through the Finance Act 2023, amendments were carried out in sub-section (1G) of section 206C of the Act. These amendments, inter alia, increased the rate of TCS from 5% to 20% for remittance under LRS as well as for purchase of overseas tour program package and removed the threshold of Rs 7 lakh for triggering TCS on LRS. These two changes were not applicable when the remittance is for education or medical purpose. These amendments were to take effect from 1st July 2023.
The Government had notified Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023 vide an e-gazette notification dated 16th May 2023 to remove the differential treatment for credit cards vis à vis other modes of drawal of foreign exchange under LRS.
After discussions with various stakeholders, and taking into account comments and suggestions received, the following decisions have been taken:
i) To give adequate time to Banks and Card networks to put in place requisite IT based solutions, the Government has decided to postpone the implementation of its 16th May 2023 e-gazette notification. This would mean that transactions through International Credit Cards while being overseas would not be counted as LRS and hence would not be subject to TCS. The Press Release dated 19th May 2023 stands superseded.
ii) Threshold of Rs. 7 Lakh per financial year per individual in clause (i) of sub-section (1G) of section 206C shall be restored for TCS on all categories of LRS payments, through all modes of payment, regardless of the purpose: Thus, for first Rs 7 Lakh remittance under LRS there shall be no TCS. Beyond this Rs 7 Lakh threshold, TCS shall be
a) 0.5% (if remittance for education is financed by education loan);
b) 5% (in case of remittance for education/medical treatment);
c) 20% for others.
For purchase of overseas tour program package under Clause (ii) of Sub-section (1G), the TCS shall continue to apply at the rate of 5% for the first Rs 7 lakhs per individual per annum; the 20% rate will only apply for expenditure above this limit, from 1st October 2023.
LLP
Vide Limited Liability Partnership (Second Amendment) Rules, 2023 MCA Amends LLP Form No. 3 – Information with regard to Limited Liability Partnership Agreement and changes, if any, made therein and LLP Form No. 4 (Notice of appointment, cessation, change in name/ address/designation of a Designated Partner or Partner and consent to become a Partner/Designated Partner) wef 01stSep2023
LAST DATE TO EXCHANGE Rs 2,000
The Reserve Bank of India had given four months to deposit or exchange notes worth Rs 2000 to deposit or exchange. Banknotes of Rs 2000 must be exchanged or deposited by September 30, 2023. If you still intend to deposit in the coming months, be sure to check bank holidays in your state before visiting a bank.
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DEMAT NOMINATION
The Securities and Exchange Board of India (SEBI) has extended the time for trading and demat account holders to make nominations or opt out of a nomination. The revised deadline is September 30th, 2023.
PENAL INTEREST
The banks and other lending institutions will not be allowed to levy penal interest with effect from January 1, 2024, the RBI said in its notification on ‘Fair Lending Practice-Penal Charges in Loan Accounts’. “Penalty, if charged, for non-compliance of material terms and conditions of loan contract by the borrower shall be treated as ‘penal charges’ and shall not be levied in the form of ‘penal interest’ that is added to the rate of interest charged on the advances,” RBI said in a notification.
It further said the quantum of penal charges “shall be reasonable and commensurate with the non-compliance” of material terms and conditions of loan contract without being discriminatory within a particular loan/product category. Also, there shall be no capitalisation of penal charges—no further interest computed on such charges. However, the instructions will not apply to credit cards, external commercial borrowings, trade credits and structured obligations which are covered under product-specific directions, the RBI said.
The RBI said that many entities regulated by it use penal rates of interest, over and above the applicable interest rates, in case of defaults/non-compliance by the borrower. “The intent of levying penal interest/charges is essentially to inculcate a sense of credit discipline and such charges are not meant to be used as a revenue enhancement tool over and above the contracted rate of interest,” the central bank said.
However, supervisory reviews have indicated divergent practices amongst the entities regulated by entities with regard to the levy of penal interest/charges leading to customer grievances and disputes, it said, while issuing the modified norms.
THE BASIS OF EXCELLENCE IS NOT TO SIT IN A HIGHER POSITION, BUT TO THINK AT A HIGHER LEVEL