We present a list of Important Highlights for the month of October 2016 in the world of Finance.These may include important news or events in the field of Finance,Industry,Taxation and other related fields.
You can get to know some great moves, major amendments or any important decisions taken during the month of October 2016.If you have missed out any of the important ones, just have a look at them and make yourself aware.
Don’t miss these important highlights that might effect your financial life in one way or the other !
5 Important Highlights for October 2016 :
1. Interest on Small Saving Schemes lowered :
The interest rates on Small Savings Scheme has been further lowered by 0.1 percent for the third Quarter of Financial year 2016-17. So,new interest rate shall be effective from 1st Oct 2016.
| S.No. | Investment Option | Rate of Interest for Quarter 2 : Jul'16 to Sep'16 | Rate of Interest for Quarter 3 : Oct'16 to Dec'16 | Rate of Interest for Quarter 4 : Jan'17 to March 2017 ( Same as Q3 ) |
|---|---|---|---|---|
| 1. | Public Provident Fund (PPF) | 8.1 % | 8 % | 8 % |
| 2. | Senior Citizen Savings Scheme (SCSS) | 8.6 % | 8.5 % | 8.5 % |
| 3. | Kisan Vikas Patra (KVPs) | 7.8 % | 7.7 % | 7.7 % |
| 4. | Sukanya Samriddhi Yojana (SSY) | 8.6 % | 8.5 % | 8.5 % |
| 5. | Post Office Monthly Income Scheme (MIS) | 7.8 % | 7.7% | 7.7% |
| 6. | National Savings Certificate (NSC) | 8.1 % | 8 % | 8 % |
| 7. | Savings Bank Account | 4 % | 4 % | 4 % |
This is not so good news,since reduction in the the interest rates on Small savings schemes like Public Provident Fund, Sukanya Samriddhi Yojana, Senior Citizen savings schemes etc. leaves a huge impact on the present as well as the potential investors.
2. GST or Goods and Services Tax in the news everywhere :
The GST or Goods and Services tax has been the talk of the town and the stage is being set for the rollout of this new tax from April 2017 onwards. There has been a lot of discussion on the rate structure which is still to be finalised.
A 4 rate Goods and Services tax structure is being proposed that includes 6,12,18 and 26 percent plus an additional cess for luxury and demerit goods. Some are in favour while others are opposing this four slab tax structure for GST.
GST Council meetings and discussions are being held for the finalisation of GST rate.But,no consensus has been reached on the applicable GST rate in the recent GST Council meetings.A lot of debate is taking place on GST to be a single rate regime or a multiple tax regime.
The Government is leaving no stone unturned and efforts are being made for its successful implementation in the next financial year.We will get to see the final GST rate hopefully in the month of November 2016.
Till then make yourself equipped with the basics of GST or Goods and Services tax and its impact on the common man !
3. Panic due to Debit Cards security breach :
A lot has been heard over the security breach of Debit cards since the past few days.Reporting of fraudulent transactions by customers to their respective banks in the past, raised this issue.
The breach has probably taken place at the Non-home ATM network i.e.when you use your debit card at an ATM other than your own bank’s ATM.This debit card security breach has been a major point of concern for the banks as well as for the customers.
However,the Finance Ministry has assured that 99.5% of the debits cards are safe and customers should not panic.Only 0.5% of total debit cards were compromised.
For security reasons,the banks have asked their customers to change their ATM PIN immediately. Some of the debit cards have also been blocked by different banks in order to avoid any fraudulent usage. New debit cards shall be issued to such customers.
So,if you haven’t changed your PIN yet, do that as a precautionary measure to prevent any misuse of your debit card in future.You might also have received an e-mail from your respective banks regarding the same.
4. Salaried Tax payers to get SMS alerts on TDS :
In yet another impressive move towards the convenience of the common man, the Finance Ministry has launched SMS alert service for the Tax Deducted at Source (TDS) for salaried individuals.
Around 2.5 crore salaried individuals will receive TDS SMS alerts from the Income tax department on a quarterly basis.This is a great initiative to keep the salaried tax payers updated on the tax deducted at source by their employer.
If you are a salaried employee,you might have already received a Welcome message from CBDT informing about the launch of this facility.Presently, this SMS facility has been introduced for salaried persons only, but the same shall be extended to the non salaried persons also very soon.
Also,SMS alerts shall be sent to the Tax deductors who have not deposited TDS before due date or have not e-filed their TDS returns before the due date.
5. Cyrus Mistry Replaced as Chairman of Tata Sons :
This came out as a big surprise and became a hot topic of discussion everywhere. On 24th October,2016 the Board of Tata Sons announced that Cyrus Mistry is being replaced as the Chairman of Tata Sons. The former Chairman Ratan Tata shall become the interim Chairman for 4 months.
Cyrus Mistry became the Chairman in December 2012 and his term lasted for 3 years and 10 months only.This was a big and definitely a bold move that took the corporates and other people by surprise. The Tata Group is a very influential group and this news is surely going to affect the corporate world and the markets for some time.
So,these were few of the major events that occurred in the month of October 2016, but their impact will surely be seen in the coming months.
Did we miss something important to be added in the above list ! Or do you wish to add anything valuable ? Do share the same, so that we can include it and update our readers about it.
Feel free to share your valuable opinions on any of the above popular topics or any queries there upon…See you in the comment section below !
If you are thinking about your Investment planning, you can have a look at 7 Best Long term Investments in India !