Changes from October 1, 2024 : Many changes related to income tax are going to happen from next month i.e. October. Some changes were made in Budget 2024 in Aadhar Card, STT, TDS rate, Direct Tax Vivad Se Vishwas Scheme 2024. The proposed changes were passed in the Finance Bill. Now these changes are going to be implemented from October 1. Let us know what changes are going to happen.
1.STT
Budget 2024 has increased the Securities Transaction Tax (STT) on futures and options (F&O) by 0.02 per cent and 0.1 per cent respectively. Also, the income received from share buyback will be taxable to the beneficiaries. This change will become effective from October 1, 2024.
2. base
Use of Aadhaar enrollment ID will no longer be allowed to apply for PAN card or file income tax return. This rule will come into effect from October 1. The government is doing this to prevent misuse of PAN card.
3. Buy-back of shares
Buyback of shares will be subject to tax at the shareholder level from October 1. This will increase the tax burden on investors. Additionally, the acquisition cost of these shares will be taken into account while calculating any capital gain or loss.
4. Floating Rate Bond TDS
It was announced in Budget 2024 that tax deducted at source (TDS) will be deducted at the rate of 10% from specified central and state government bonds, including floating rate bonds, from October 1, 2024. There is a limit of Rs 10,000, after which tax is deducted. This means that if the revenue earned in the entire year is less than Rs 10,000, there is no TDS.
5. TDS Rates
The TDS rates proposed in the Union Budget 2024 were approved in the Finance Bill. TDS rate for payments under sections 19DA, 194H, 194-IB and 194M has been reduced from 5% to 2%. TDS rate has also been reduced for e-commerce operators. TDS rate for e-commerce operators was reduced from 1% to 0.1%.
6. Direct Tax Vivad Se Vishwas Scheme 2024
The Central Board of Direct Taxes (CBDT) has announced the Direct Tax Vivad Se Vishwas Scheme, 2024 (also known as DTVSV, 2024) to settle pending appeals in cases of income tax disputes. The above scheme will be implemented from October 1, 2024.
