1 October 2024 New Rules: In October 2024, many rules related to money have changed. The changes made by the government will have a direct impact on insurance policies, mutual fund taxation, and financial areas.

These changes have been made with the aim of increasing the transparency of the government and regulatory bodies and making the process easier for investors. Let us know about these important changes.

1. Changes in PPF and small savings schemes: Now only one PPF account can be opened for a minor. If more than one account has been opened, they will be considered irregular and will get only 4% interest on them. Apart from this, interest on PPF accounts of NRIs (Non-Resident Indians) will stop from October 1.

2. More transparency for loans: RBI has directed that from October 1, all banks and NBFCs (non-banking financial companies) should give Key Facts Statement (KFS) to the borrowers, in which all the charges and terms are clearly given. This will help the borrower to avoid hidden expenses and increase financial understanding.

3. Improvement in health insurance: IRDAI has reduced the waiting period for pre-existing diseases from 4 years to 3 years for health insurance policies. Also, the moratorium period has now been reduced from 8 years to 5 years, so that the policyholders will be able to claim faster.

4. High surrender value: If life insurance policyholders surrender their endowment policy early, they will now get a higher amount refund than before. Partial refund has also been fixed in the first year.

5. Relief for mutual fund investors: Now 20% TDS (tax deduction at source) will not be levied on repurchasing mutual fund units. This change will reduce the tax burden on mutual fund investors.

6. Direct Tax Vivad Se Vishwas Scheme: The government has launched the Direct Tax Vivad Se Vishwas Scheme, 2024, which will enable immediate resolution of tax disputes. Taxpayers can avail this scheme by declaring their old tax related cases or correct income before 31 December.

7. Changes in share buyback taxation: From now on, investors will have to pay tax on the amount received from the share buyback of companies as dividend income. This will affect investors falling in the higher income category.

8. Bonus shares: SEBI has reduced the trading time of bonus shares from 2 weeks to 2 days, so that investors will be able to trade faster.