Important financial changes becoming effective from May 2023. Here’s a guide.

The new financial year 2023-24 began on a high as major changes happened to personal taxation, investments, and savings after the Union Budget 2023. As we step into May, more changes are lined up that might impact your finance.

Six important money-related changes are happening in May 2023. Have a look at what they are –

1. Expiration date for the higher pension option 

In November 2022, the Supreme Court (SC) allowed salaried employees to contribute more to the Employees’ Provident Fund (EPF) scheme. Previously, the statutory wage ceiling was Rs.15,000, which limited members’ contributions. However, per the latest ruling, SC allowed EPF subscribers to calculate their contributions on their actual basic pay if it was higher than the ceiling.

A higher contribution would result in a higher pension, and you are eligible for the same if you were an EPF member on September 1, 2014. May 3, 2023, is the last date to opt for the higher pension option if eligible.

To pick the scheme, visit https://unifiedportal-mem.epfindia.gov.in/memberInterfacePohw/ and fill up the application form. Submit the relevant documents, and your employer will validate your application so that you can qualify for the scheme.

Related Article  - Read this article to know whether you are eligible for a higher pension.

2. Advertisement code for analysts and advisors 

Investment advisors and research analysts must comply with SEBI’s (Securities and Exchange Board of India) updated advertisement code when promoting their business. Some of the key points of the new code are as follows –

• Superlative words like ‘best,’ ‘top,’ ‘leading,’ etc., cannot be used.
• Too much use of technical or legal jargon has been disallowed.
• No promise of returns or past performance can be made.

The new code becomes effective from May 1.

3. Brand or trade name rules for analysts and advisors 

Besides the advertisement code, investment advisors and research analysts will have to comply with rules regarding their branding. According to SEBI’s guidelines, the following information should be present in all communications, promotions, publications, and website of the advisor or analyst –

• Full name
• Brand logo
• Address
• Telephone numbers

Moreover, advisors and analysts should add a specified disclaimer in their communications. The rule also comes into effect from May 1.

4. KYC compliance becomes a must for e-wallets for mutual fund transactions

While you can use e-wallets to invest in mutual funds up to a limit of Rs.50,000, your e-wallet should be KYC-compliant. From May 1, KYC compliance per RBI’s (Reserve Bank of India) norms have been made compulsory.

5. Reduced benefits on SBI Credit Cards

The leading bank SBI (State Bank of India) has reduced its credit card benefits from May 1. Here are the changes –

• No more complimentary domestic airport lounge access.
• No cash back on specified spends like jewelry, utility bills, school fees, gift cards, etc.
• Maximum cashback from online or offline spends restricted to Rs.5000
• 1X reward points (previously, it was 5X) on online rent payments using SimplyCLICK and SimplyCLICK Advantage cards.

6. US Student visa rates hiked

The visa fees have been hiked for students wishing to pursue higher education in the USA (United States of America). From May 30, the fee will be updated to $185 compared to the current $160.

Know these changes and keep them in mind to plan your finances effectively.

Related Article - Debt fund taxation rules have changed starting this year. Know what experts say.

Source 

• https://www.moneycontrol.com