FASTag, ITR filing, medicine prices and more: What changes from April 1
Starting today (April 1), the Insurance Regulatory and Development Authority of India (Irdai) has enforced a new directive mandating the digitization of all insurance policies. This directive encompasses policies across life, health, and general insurance sectors, making it obligatory for all policies to be issued in electronic formats.
FollowWith the onset of April 2024, a fresh financial year commences, accompanied by noteworthy changes that can influence our financial decisions and investments. From managing insurance policies to planning for retirement and even handling payments, staying informed about these updates is vital for everyone. Let's deep dive into the details of what's changing and explore its potential impact on individuals.
Digitisation of insurance:
Starting today (April 1), the Insurance Regulatory and Development Authority of India (Irdai) has enforced a new directive mandating the digitization of all insurance policies. This directive encompasses policies across life, health, and general insurance sectors, making it obligatory for all policies to be issued in electronic formats.
EPFO automatic transfers:
A recent change in the Employees' Provident Fund Organisation (EPFO) streamlines the process of transferring subscribers' balances to their new employers when changing jobs. This eliminates the necessity for EPFO account holders to manually request a transfer of their Provident Fund (PF) amount.
Revision in drug pricing:
Effective April 1, the Department of Pharmaceuticals has introduced revised ceiling rates for 65 formulations, encompassing essential medications like painkillers and drugs for chronic ailments such as type 2 diabetes. These adjustments align with a 0.00551 per cent inflation in the National List of Essential Drugs (NLEM) prices, mirroring shifts in the wholesale price index (WPI).
The updated rate list now covers critical medications like painkillers, antivirals, antibiotics, antimalarials, and treatments for type 2 diabetes.
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FASTag KYC requirements:
Effective immediately, individuals who haven't updated their vehicle's KYC details with their banks might face interruptions in FASTag services. Banks are set to deactivate FASTags for non-compliant users, potentially leading to dual toll tax payments at toll plazas. The National Highways Authority of India (NHAI) is urging FASTag users to adhere to RBI guidelines.
KYC compliance and mutual funds:
Starting April 1, mutual fund transactions like investments and withdrawals will demand updated KYC documentation. Traditional proofs like bank statements will no longer suffice, with Aadhaar ID, passport, and voter ID being the officially valid documents for such transactions.
NPS security measures:
Starting April 1, the National Pension System (NPS) will implement two-factor authentication, enhancing security through OTP verification for account access.
Adoption of New Income Tax regime:
As of April 1, the new income tax regime becomes the default option. Those who do not actively select the old regime will be automatically enrolled in the new system, which provides tax exemptions for incomes up to Rs 7 lakh per year.
