Starting Today, these 10 rules will change your life, for good and bad

Source :Sify
Author :Finance Desk
Last Updated: Thu, Oct 1st, 2020, 18:01:37hrs
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10 new rules starting from October 1, 2020 could be blamed in the way your consumption and spending habits may get altered from today.

These may not look as big changes but they do affect the life of a commoner in many ways than you would've thought.

These new government rules will change the way you work, consume, travel, and even cook. And, the new rules are across payment of income tax, driving licence, health insurance, remittances, credit cards and even food. FYI, if you are planning to buy a health insurance, you better double-check on what you are getting covered for.

Here's a look at what's changing:

Cooking: Starting from October 1, the concept of free LPG connection is history. Under the Pradhan Mantri Ujjwala Yojana (PMUY), the process of getting a gas connection for free is ending on September 30, 2020. Also, the process of blending of mustard oil with other cooking oil has been banned.

Remittances or Transfer of Funds overseas: Remittances will turn expensive with a 5 per cent tax that will be charged on foreign fund transfers. For now, readers should be appraised that the TCS (Tax-Collected at Source) on Liberalized Remittance Scheme is only on remittances of ceiling of Rs 7 lakh. However, the calculation will be computed for financial year. This means if the amount of remittance is above RS 7 lakhs, one would have to pay a flat TCS rate of 5 percent.

For transactions related to education, the TCS rate is fixed at 0.5 percent while banks could charge 5 percent if the PAN-number is not available in transactions.

For non-PAN, other remittances, TCS levied would be higher - at 10 percent.

According to a tweet from the State Bank of India, tax on foreign tour packages would be levied at 5 per cent for any amount.

Eating-Out: From Today, sweet sellers will have to complusorily display 'best before date' on non-packaged or loose sweets available at their shops. The Food Safety and Standards Authority of India (FSSAI) has come out with a strong directive. The decision is likely to incur some cost for shop-keepers but assures hygiene.

Insurance:Cost of insurance premiums is expected to rise by as much as 2-5 percent. That is still an industry estimate given how health insurance on at least 17 permanent illnesses have been de-linked from a single policy. Hence, the standardisation of rules relating to health insurance may cost you a bit on the wallet. Hopefully, IRDAI should come up with more clarity and revisions.

TV-Electronic Components: Cost of an imported TV or one with imported components could increase. This is owing to an import duty of 5 percent on imports of TV components. The government's move wins a thumbs-up from those vouching for make-in-India, although those seeking latest technology may have to shell out a few more cents. The move certainly improves domestic production capacity of open cell panels and curtails India's imports.

Banking & Financial Services: Spending limits and security aspects on international transactions have been increased. Card users will now be allowed to register for 'opt-in' or 'opt-out' services. They can also decide on their spend-limits for international transactions, online transactions as well as contactless card transactions.

Meanwhile, SBI has reduced the AMB or Average Monthly Balance as well as charges for non-balance of AMB.

E-commerce Transactions: The Tax Collected at Source (TCS) regime kicks in from October 1 under which an e-commerce operator has to deduct 1 per cent tax on sale of goods and services. Accordingly, an e-commerce operator will deduct income tax at 1 per cent of the gross amount of sale of goods or services.

Auto: A major change that has a bearing on our lives is transportation. The good news is physical verification or carrying physical copies of important documents such driving licence or registration certificate (RC) will not be required anymore. A valid soft copy of these documents attached to the vehicle will do.

Getting DL is easy: The government has specifically said docs will be maintained online. We have already seen how easy the Saarthi portal is and details of driving licenses including update process should help commoners as well as law enforcement officials. In simple words, it is convenient, safe and completely digital.

Mobile Phone for Route Navigation: Previously, riders and drivers were confused about using mobile while driving. The government has clarified that it will allow usage of mobile but has restricted it only for route navigation and in a manner that it doesn't distract the driver from focusing on road. We are as curious as readers are on how focus or concentration will be gauged.

The Ministry for Road Transport and Highways changed the policy in Motor Vehicles Rules, 1989. As per the change, vehicular documents can be maintained on the Central government's online portal.

Disclaimer: Photo by Praveen kumar Mathivanan, sourced from Unsplash.