In the new financial year, several changes will take effect in the personal finance space, including new taxation rules. Let us look at those
As we usher in a new financial year, it is time to relook at your investment plans and adjust them accordingly to achieve your financial goals. Several recent changes in the personal finance space, including taxation, will take effect in FY23-24, and to make the most of it, we should be prepared.
The new tax rules, which will come into force from April 1, 2023, were announced in Budget 2023.
Here are some important changes to know for FY23-24:
Change In NPS Withdrawal Rule
The Pension Fund Regulatory and Development Authority (PFRDA) has made it mandatory for the National Pension Scheme subscribers to update certain documents on the portal of the Central Record Keeping Agency (CRA) as part of efforts to simplify and speedup annuity payments after their exit from NPS. They will need to submit an NPS exit/withdrawal form, identity and proof of address, bank account details and a copy of the Permanent Retirement Account Number (PRAN). During the investment tenure, one can partially withdraw three times. At maturity, one can withdraw 60 per cent of the NPS corpus, and they will need to invest the remaining 40 per cent in annuities.
Gold Jewelry Purchase With HUID Number
The Ministry of Consumer Affairs, Food and Public Distribution, earlier this month, in a move to protect consumer interest, announced that only hallmarked gold jewellery with six digits Hallmark Unique Identification Number (HUID) would be allowed for sale from April 1, 2023.
Earlier, the HUID used to be four digits. However, the government introduced the six-digit HUID number for all hallmarked gold jewellery on July 1, 2021. Effective April 1, 2023, the sale of gold jewellery without the six-digit alphanumeric code is prohibited. The HUID number is unique for every article and offers easy traceability for every piece of jewellery. It is also an assurance of quality.
Increased SCSS and POMIS Deposit Limit
Budget 2023 has increased the investment limit in the Senior Citizen Savings Scheme (SCSS) and Post Office Monthly Income Scheme (POMIS). From April 1, 2023, the SCSS investment limit is Rs 30 lakh, enhanced from the previous Rs 15 Lakh. The scheme revises and pays interest quarterly. For the March quarter of 2023, it offered 8 per cent interest per annum. SCSS has a five-year lock-in period.
POMIS is also a sovereign investment scheme. It pays a monthly interest. The minimum investment is Rs 1,000, and the maximum is Rs 4.50 lakh. The higher limit has now been changed to Rs 9 lakh, effective April 1. In the case of a joint POMIS account, the limit is enhanced to Rs 15 lakh from Rs 9 Lakh. The scheme has a five-year lock-in period.