New motor rules to increased taxes on foreign remittances - Things that are set to change from October 1

Change is inevitable. Every now and then new rules are announced for different sectors. And, several of them are set to come into effect from October 1. Most of these will affect you directly but some will have an indirect impact as well. Here is a look at few things that are set to change from October 1: 

New Motor Rules 

The government has already announced that the maintenance of vehicular documents, including driving licences and e-challans, will be done through an Information Technology portal. The details of these documents will be maintained in the chronological order. 

5% taxes on foreign remittances 

Tax collected at source (TCS) at the rate of five per cent will be imposed on the money remitted outside India. In case 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.    

Standardization in Health Insurance 

Irdai has asked insurers to standardize the exclusions — diseases or medical conditions that are not covered under a policy. As per the change, any disease diagnosed by a physician 48 months prior to the issuance of the health cover will be classified as pre-existing diseases. Treatment for mental illness, stress will now be covered under health insurance policies. 

Loan rates to come down 

The Reserve Bank of India (RBI) had made it mandatory for banks to link their retail and MSME loans to external interest rate benchmarks. This means that rates for home, car, and personal loans is likely to come down soon.  

Apart from this, the government is also expected to introduce new set to guidelines for the next phase of lockdown, which will bring further changes.