October 1 isn’t a special day in the government’s calendar, but this year it was a day for changing the rules on everything from driving licences and credit cards to insurance claims, foreign remittances and GST procedures. In other words, these were changes that affected a large swathe of the population.

Some changes were a recognition of the fact that our lives have moved online in a huge way. In the world of banking, new rules have been introduced for customer protection and there are also new taxes on certain transactions.

Let’s look at the changes that have been introduced:

CREDIT AND DEBIT CARDS

More people are using credit and debit cards in India than ever before. And credit cards frauds are growing at an even faster pace. So now a host of new rules have been introduced to protect users. Credit and debit cardholders can opt for which services they want on their cards. You can, for instance, specify that your card can only be used for credit card transactions. Similarly, you can specify whether the card can be used for e-commerce payments and other online transactions. Importantly, you can also specify whether your card should be valid for international transactions. You can change those specifications whenever you decide.

ON THE ROAD

For drivers, the government has recognised how much of our world has gone online. So now you don’t have to have all your car papers and driver’s licence physically in the car. It will be sufficient if you can display them on your phone and show that they have been validated by government sites like Parivahan or Digi-Locker. These documents include insurance, a driving licence, vehicle fitness and pollution checks. In cases of traffic offences, police can seize your documents electronically but cannot demand that they be produced on the spot.

Also, you can use the map-reading facility on your phone when you’re at the wheel. But you’re in for hefty fines if you’re caught talking on your phone or replying to messages. Says the government order: “Use of handheld communications devices while driving shall solely be used for route navigation in such a manner that shall not disturb the concentration of the driver while driving… the use of mobile phone is only permitted for navigation purposes only and no other task while driving”.

One grey area is the use of Bluetooth or hands-free. But it’s fairly safe to assume the police believe that anything that distracts a driver is banned. It’s a moot question, though, whether a court could convict drivers on anything that isn’t specifically prohibited.

SPENDING MONEY ABROAD

If you’re planning on a holiday abroad (there may not be many travellers to foreign shores in these pandemic times) be prepared to pay up 5 per cent on all foreign tour packages – unless you can show that the money has already been subjected to TDS (tax deducted at source). If you’re sending money abroad for other purposes, the 5 per cent tax will kick in only after a Rs 7-lakh lower limit. If, by any chance, you don’t have PAN or Aadhaar Card, then you’ll have to pay 10 per cent tax.

Parents planning to send their children abroad can breathe easy. Foreign remittances funded by loans will only be subject to a 0.5 per cent tax for amounts over Rs 7 lakh. Indian citizens are currently allowed to send $250,000 abroad.

HEALTH INSURANCE. WHAT THE DOCTOR ORDERED

Insurance companies are sure to be studying the wide range of new provisions with great care. For starters, more illnesses will be covered by insurance (ones not covered will drop from 30 to 17). Certain mental and genetic illnesses, oral chemotherapy and stem cell therapy could now be covered. Premiums are expected to climb as a result, possibly by up to 20 per cent. In a nod to the developments of the last six months, telemedicine charges will also be covered if you have OPD coverage. Also, insurers cannot refuse claims made by people who have paid premiums for eight years.

E-COMMERCE

The pandemic has sent e-commerce sales soaring. But now, e-commerce operators will have to deduct 1 per cent on the gross amount of all goods and services. Also, a tax of 0.1 per cent will be levied on all transactions of over Rs 50 lakh. Both these provisions are subject to various exceptions and there appears to be considerable room for interpretation of these new levies that were introduced in the Finance Act 2020. Also, the new taxes may have the effect of discouraging smaller players from moving online. Expect plenty of legal battles over these provisions.

E-INVOICING

It’s been said that the GST taxes introduced in 2017 wouldn’t really be effective until it they were backed by e-invoicing that would allow authorities to trace transactions at different levels. E-invoicing is mandatory for players with sales of Rs 500 crore and over. But it has also been the toughest to implement. Even now, the government has been forced to give a one-month grace period to players who haven’t been able to get ready for the new online regime.