New personal finance rules 2024: As we enter the new year 2024, taxpayers and investors should start taking note of the significant shifts in financial regulations and deadlines coming up from January. Here’s a list of some of the key changes in the personal finance space that will come into force from January 1, 2024:
> Insurance comprehensive policy feature details
The Insurance Regulatory and Development Authority of India (IRDAI) has said that the insurance companies will provide a Customer Information Sheet (CIS) to its policyholders. The document will be made in an attempt to simplify complex policy details and offer policyholders a clear understanding of their insurance coverage.
Insurance companies will furnish essential policy details, such as the sum assured, coverage specifics, exclusions, and claims procedure.
The revised customer information sheet (CIS) shall be implemented with effect from January 1, 2024
“Since a policy document may be fraught with legalese, it is imperative to have a document that explains in simple words, the basic features with regards to the policy and provides necessary information,” IRDAI said.
> Bima Trinity initiative in 2024
The Bima Trinity project, which includes Bima Sugam, Bima Vistaar, and Bima Vaahak, is expected to be launched in 2024 at different intervals. Bima Sugam will be an online platform where customers can choose a suitable scheme from multiple options given by various companies.
Bima Vistaar promises to be a revolutionary insurance product that seeks to offer affordable protection to the masses. It is expected to be launched by January 2024.
Bima Vaahak is a women-centric distribution channel at the Gram Sabha level that aims to empower women by educating them about the benefits of comprehensive insurance thus enabling their financial security.
> Purchase and sale of SIM cards
The landscape of purchasing and maintaining SIM cards will be changing with the enactment of the new telecom bill. This decision comes in the wake of increased instances of spam, scams, and online fraud observed in 2023. These substantial changes to the SIM card acquisition procedure will come into effect from January 1, 2024.
> Mutual funds, demat account holders nomination deadline
Mutual funds and demat account holders are required to nominate a beneficiary or opt out of it by June 30, 2024. If investors miss the nomination deadline, Sebi may freeze debits from their holdings. This means investors won’t be able to withdraw from mutual funds or use their demat accounts for trading.
> Free update of Aadhaar details by March 14
The Unique Identification Authority of India (UIDAI) has allowed the updatation of Aadhaar details till March 14, 2024, free of cost. But the services are free only on the myAadhaar portal. Cardholders will have to pay Rs 50 at physical Aadhaar centres.
> Advance tax payment
Advance tax refers to the tax paid within the same financial year as the income is earned. The tax is paid in four instalments throughout the year. By June 15, about 15% of the total tax liability must be paid. This increases to 45% by September 14, accounting for the June instalment as well.
By December 15, the tax liability is 75%, including the June and September instalments.
Finally, by March 15, the entire tax (15% + 30% + 30% + 25%) must be paid in accordance with the income tax law.
Also read: IT Returns 2024: New Income Tax rules introduced in 2023 that would affect you in 2024