Major changes in rules related to motor vehicle, health insurance, income tax, credit and debit card implemented from 1st October, 2020 - (01 Oct 2020)

Civil

From 1st October 2020 onwards, several rules are going to change which will impact daily lives of all citizens. Some of the key changes include Motor vehicle rules, Ujjwala scheme, health insurance, RBI credit and debit card rules. From now onwards, there is no need to keep a hard copy of documents like RC and driving licence while driving and now, people can drive a vehicle with a valid soft copy of the documents attached to the vehicle. Further, under the flagship scheme of the government Pradhan Mantri Ujjwala Yojana or PMUY, the process of getting a free gas connection ended on 30 September 2020.

From 1st October onwards, any amount sent abroad to buy foreign tour packages, and every other foreign remittance made above Rs 7 lakh, will attract a tax-collected-at source (TCS) unless tax is already deducted at source (TDS) on that amount. TCS at the rate of five per cent will be imposed on the money remitted outside India. However, if the remittance is made out of a loan taken for higher education, the TCS rate will be 0.5 per cent of the money remitted. Another change from October 1 onwards is Reserve Bank of India's (RBI) new guidelines to secure debit and credit cards will come into effect. Card users will now be able to register opt-in or opt-out of services, spend limits, etc. for international transactions, online transactions and contactless card transactions. Further, another key change is in a bid to remove ambiguities, IRDAI has asked insurers to standardize the exclusions — diseases or medical conditions that are not covered under a policy.

Further, from October 1, a customs duty at the rate of 5 per cent shall apply on Open Cell, a key component for television manufacturing. The customs duty exemption given to Open Cell for a period of one year ended on September 30 therefore, buying a TV set may become expensive. The Income Tax Department issued guidelines for applicability of TCS provision which requires an e-commerce operator to deduct 1 per cent tax on the sale of goods and services with effect from October 1. Now the Sweet makers have to mention the 'Best before date' as it has been made compulsory to mention it on the product. However, it is not mandatory for them to write the date of manufacture of the product, as the Food Safety and Standards Authority of India (FSSAI) has left it to the will of the manufacturers.

Tags : RULES CHANGE