New Financial Rules: Let’s take a look at the key financial changes that will come into effect from October 1, 2024.
Several key changes to income taxes will come into effect on October 1. As outlined in the Union Budget 2024, modifications were made to the Aadhaar card, Pan Card, Securities Transaction Tax (STT), TDS rates, and the Direct Tax Vivad Se Vishwas Scheme 2024. These proposed adjustments have now been passed in the Finance Bill.
Let’s take a look at the key financial changes that will come into effect from October 1, 2024:
- Securities Transaction Tax (STT): The 2024 budget increased the STT on Futures and Options (F&O) of securities to 0.02% and 0.1%, respectively. Additionally, income received from share buybacks will now be taxed at the beneficiary level. These changes passed in the Finance Bill, will be implemented from October 1, 2024.
- Aadhaar: To prevent PAN misuse and duplication, starting October 1, provisions allowing the use of an Aadhaar Enrollment ID in place of an Aadhaar number, as well as Aadhaar details in ITRs and PAN applications, will no longer apply.
- Share Buybacks: From October 1, share buybacks will be taxed at the shareholder level, similar to dividends. This will increase the tax burden on investors, as the acquisition cost of shares will now be factored in when calculating capital gains or losses.
- TDS on Floating Rate Bonds: Starting October 1, 2024, a 10% tax deducted at source (TDS) will apply to specific central and state government bonds, including floating rate bonds. However, TDS will only apply if the income exceeds ₹ 10,000 in a year.