2024-09-26 15:30:33
New Delhi: Some rules related to income tax are changing from October 1. These rules were mentioned in the budget presented in July this year. The changes that will happen include Aadhaar card, STT, TDS rates etc. Whether someone files regular income tax return or is going to file tax for the first time, everyone should know about the changes in these rules. If you are not aware of these rules, you may get into many problems.
Dispute to Trust 2.0: Opportunity to settle income tax related litigation, now this big update has come
These rules will be applicable from October 1
1. STT
In the budget presented in July 2024, there was a talk of increasing the Securities Transaction Tax (STT) on Futures and Options (F&O). STT on futures was increased by 0.02 percent and on options by 0.1 percent. Apart from this, beneficiaries will also be taxed on the income from share buyback. This amendment has been passed and will be effective from October 1.2. Aadhaar
The provisions allowing the use of Aadhaar enrolment ID instead of Aadhaar number, citing Aadhaar and PAN applications in ITRs will not be applicable from October 1. This step has been taken to prevent PAN misuse and duplication.
3. Repurchase of shares
From October 1, share buybacks will be taxed at the shareholder level just like dividends. This will increase the tax burden on investors. Apart from this, the shareholder’s acquisition cost of these shares will also be taken into account while calculating any capital gains or loss.
4. Floating Rate Bond TDS
It was announced in Budget 2024 that TDS will be deducted at the rate of 10 per cent from certain central and state government bonds, including floating rate bonds, from October 1, 2024. If the revenue for the entire year is less than Rs 10,000, no TDS will be deducted.
5. TDS Rates
TDS rate for payments under sections 19DA, 194H, 194-IB and 194M has been reduced from 5% to 2%. TDS rate for e-commerce operators has been reduced from 1% to 0.1%. These new rates will also come into effect from October 1.
6. Direct Tax Vivaad se Vishwas Scheme 2024
The Central Board of Direct Taxes (CBDT) has announced the Direct Tax Vivaad se Vishwas Scheme 2024 to settle pending appeals in income tax dispute cases. It is also known as DTVSV 2024. The scheme will come into effect from October 1. It provides for a lower settlement amount for the ‘new appellant’ as compared to the ‘old appellant’.