These four money matters will change in two weeks: Know the details

You have only two weeks in your hand to adapt to the new things a few important money matters are going to change from October 1, 2021. These changes would have a huge impact on a person’s wallet. All of these tasks must be completed by September 30. Else, you will face lots of problems in future transactions. Money9 gives you details of four significant money matters that will change from October 1.

Less in-hand salary

The Centre is set to implement several very important changes in labour rules from October 1, 2021. According to new labour law, the in-hand salary of the employees will change. It might recue the take home salary by almost 7-8% from the existing amount.

According to the draft labour law, the basic pay of the employees will be 50% or more of the total salary. It is likely that other allowances in the total salary will also change after the implementation of new labour law. Besides, working hours of employees are going to be increased from 9 hours to 12 hours.

It is to be noted that the hike in basic salary will directly affect the PF as it is based on basic pay. An increase in the basic pay will increase the PF, and this will result in a decline in the take-home salary. So be ready, from October onward, you will have less in-hand salary but more contribution in PF.

Link PAN and Aadhaar

After extending the deadline multiple times, the government has set September 30 as the latest deadline of linking PAN and Aadhaar. If PAN and Aadhaar are not linked, from October 1, your PAN will become inoperative.

If your PAN becomes inoperative, you will be no longer able to conduct financial transactions wherever quoting of PAN is mandatory such as opening of trading account, savings bank account, taking any loan etc. Even existing accounts where PAN has to be furnished will be impacted. If your PAN is become inoperative then you will not be able to conduct most financial transaction. Besides, you also have to pay a fine up to Rs 1,000.

KYC for trading account

Securities and Exchange Board of India (SEBI) has already announced that the deadline to update KYC details in investors’ trading accounts has been extended to September 30, 2021. The earlier deadline was July 31, 2021.

According to the order, an individual must update the following details like full name, address, PAN, mobile number, email ID and income range while opening a trading account if he/she has an existing trading account.

If the KYC details are not updated, an individual will not be able to trade and the trading account will be deactivated. Even if shares are bought, then the transfer of such shares will not be completed till the time the trading account becomes fully KYC compliant.

No auto debit

According to RBI guidelines customers need to give a nod for online auto debit transactions every time from October 1 onwards. One has to give a nod every month for payment of EMI, mobile bill payment, electricity bill payment, SIP payment, OTT payment and even credit card payment, etc, from October.

Therefore, you should update your phone number with the bank. If the bank has the wrong mobile number, then your auto-debits will not get validated by OTP and amount will not get debited from your account. Missing an auto-debit payment can have penal consequences and make you a defaulter.

According to RBI directive, banks are required to send notification to customers five days before the payments are scheduled. The debit would be allowed once it is confirmed by the customer. If the amount is more than Rs 5,000, the payment has to be authenticated via OTP every time by the customer.