Finance Minister Nirmala Sitharaman during Union Budget-2024 introduced key rule changes related to Aadhaar Card, Securities Transaction Tax, TDS rate, and Direct Tax Vivaad se Vishwas Scheme 2024 among others. All these changes have been approved as the part of the Finance Bill.
Check out the list of the major tax changes that will come into effect from October 1, 2024.
Aadhaar Enrolment ID no longer will be valid for PAN and ITR filing
Provisions allowing people to use their Aadhaar enrolment ID instead of the Aadhaar number while filing Income Tax Returns (ITR) or applying for a PAN will be discontinued, effective October 1.
Securities Transaction Tax
The Securities Transaction Tax (STT) on Futures and Options (F&O) will see an increase and the rate will rise by 0.02% for futures and 0.1% for options from October 1.
Floating Rate Bonds TDS
From October 1, 2024, a 10% TDS will be applicable on income earned from certain central and state government bonds, including floating rate bonds. The TDS will only be deducted if the total such income of the person exceeds Rs 10,000 in a financial year.
TDS Rates
Effective October 1, the TDS rates under sections 19DA, 194H, 194-IB and 194M has been reduced from 5% to 2%. On the other hand, TDS rates for e-commerce operators reduced from 1% to 0.1%.
Section 194DA – Payment for life insurance policy.
Section 194G – Commission on sale of lottery tickets.
Section 194H – Payment of commission or brokerage.
Section 194-IB – Payment of rent by certain individuals or HUFs.
Section 194M – Payment of certain sums by certain individuals or HUFs.
Section 194F – Payment in case of repurchase of units by a mutual fund or UTI is proposed to be deleted from 1st October 2024.
Share Buy-backs
Share buybacks will be taxed at the shareholder level, like dividends, effective from October 1.
Direct Tax Vivaad se Vishwas Scheme 2024
The Central Board of Direct Taxes (CBDT) has announced the Direct Tax Vivaad se Vishwas Scheme 2024 with the aim to settle down the pending appeals in income tax disputes. The scheme will come into effect from 1st October.
