Rules Changing From October 1: Higher Charges On F&O Trading, Hikes On TDS, New Rule For PAN Card | Full Details

Financial Rules October 2024: The commencement of October 2024 brought a lot of changes in existing financial rules and they all come into effect on October 1. Many of these changes related to the securities market, Aadhaar and PAN were introduced in Budget 2024-25. Citizens will have to accommodate new changes in Securities Transaction Tax (STT), TDS rates, and the Direct Tax Vivad Se Vishwas Scheme 2024.

Direct Tax Vivad Se Vishwas Scheme 2024

The Central Board of Direct Taxes (CBDT) has announced that the Direct Tax Vivad Se Vishwas Scheme 2024 is effective from October 1. The scheme aims to reduce income tax litigation by enabling taxpayers to resolve ongoing disputes, including appeals pending in the Supreme Court, High Court, and other appellate authorities from July 22, 2024.

Securities Transaction Tax (STT)

In the 2024 Budget, the STT on securities futures and options (F&O) was raised to 0.02 per cent and 0.1 per cent, respectively. In addition, income from share buybacks will now be taxed at the beneficiary level. The amendments made in the Finance Bill will take effect on October 1.

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Aadhaar Enrollment ID

To prevent misuse and duplication of PAN, from October 1, the provisions allow the use of an Aadhaar enrollment ID in place of an Aadhaar number and Aadhaar details in income tax returns filling.  Aadhaar for PAN applications will no longer be needed.

Share buybacks Taxation

As per the changes from October 1 onwards, share buybacks will be taxed at the shareholder level, like dividends. This will increase the tax burden on investors since the cost of acquiring shares will now be taken into account while calculating capital gains or losses.

TDS on floating rate bonds

From October 1, 2024, a 10% tax deducted at source (TDS) will be levied on certain central and state government bonds, including floating rate bonds. However, TDS will only be applicable if the income exceeds ₹ 10,000 in a year.

TDS Rates

The proposed TDS rate changes in the Union Budget 2024 have been approved. TDS for payments under sections 19DA, 194H, 194-IB, and 194M has been reduced from 5% to 2%. The TDS rate for e-commerce operators has been reduced from 1% to 0.1%.

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