Changes from October 1, 2024: Many changes related to income tax are going to happen from next month i.e. October. In Budget 2024, some changes were made in Aadhar Card, STT, TDS Rate, Direct Tax Dispute to 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 percent and 0.1 percent respectively. Also, the proceeds from share buyback will be taxable for the beneficiaries. This change will become effective from October 1, 2024.

2. Aadhaar

Now, the use of Aadhaar enrolment ID will not be allowed for applying for PAN card or filing income tax returns. 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

From October 1, buyback of shares will be subject to tax at the shareholder level. This will increase the tax burden on investors. Moreover, 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 deduction 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. The TDS rate for payments under sections 19DA, 194H, 194-IB and 194M has been reduced from 5% to 2%. The TDS rate has also been reduced for e-commerce operators. The TDS rate for e-commerce operators has been reduced from 1% to 0.1%.

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 (also known as DTVSV, 2024) to settle pending appeals in income tax dispute cases. The above scheme will be implemented from October 1, 2024.