As we approach October, important rule changes are set to take effect, following announcements made in the Union Budget 2024 by Finance Minister Nirmala Sitharaman. These updates include various aspects, from Aadhaar regulations to adjustments in income tax policies. Some of these changes are effective now but some will be from next month.

Aadhaar Card Regulations

One notable change is the discontinuation of the option to quote the Aadhaar Enrolment ID instead of the Aadhaar number. This move aims to tackle issues related to the misuse and duplication of Permanent Account Numbers (PAN). From 1st October 2024, people will be required to provide their Aadhaar number when applying for PAN allotment and in their income tax returns. This requirement has been in place since 1st July 2017 under Section 139AA of the Income Tax Act.

Increased Securities Transaction Tax

The government has also announced an increase in the Securities Transaction Tax (STT) on Futures & Options (F&O) for securities. The new rates will be set at 0.02% for Futures and 0.1% for Options. Additionally, tax will be imposed on earnings from share buybacks, with these changes coming into effect on 1st October 2024.

Floating TDS Rates

Starting from 1st October 2024, tax deducted at source (TDS) will be applied at a rate of 10% on specified central and state government bonds, including floating rate bonds. However, if an individual's total income from such sources is below Rs 10,000 for the entire year, no TDS will be deducted.

Revised TDS Rates

The Finance Bill has also approved changes to TDS rates as outlined in the Union Budget 2024. Specifically, the TDS rates for payments under sections 19DA, 194H, 194-IB, and 194M will be reduced from 5% to 2%. Additionally, the rate for e-commerce operators will decrease from 1% to 0.1%.

Direct Tax Vivad Se Vishwas Scheme

Finally, the Direct Tax Vivad Se Vishwas Scheme will come into effect from 1st October 2024. This initiative aims to provide a way for resolving pending tax disputes, with a focus on disputes that arose before 22nd July 2024.