New Delhi: From tomorrow, i.e 1 October 2024, several proposals announced by Finance Minister Nirmala Sitharaman during her Budget 2024-25 announcement will come into effect.
Here Are 6 Income Tax Rules That Will Be Effective From October 1:
1. Discontinuation of quoting Aadhaar Enrolment ID
The government will discontinue the quoting of Aadhaar Enrolment ID in place of Aadhaar number effective from 1 October 2024.
2. Rationalization of tax deducted at source (TDS) Rates
From 1 October 2024 TDS rates will be brought from 5 percent to 2 percent in certain sections and omit section 194F where TDS rate is 20 percent - Section 194DA - Payment in respect of life insurance policy, Section 194G – Commission etc on sale of lottery tickets, Section 194H - Payment of commission or brokerage, Section 194-IB - Payment of rent by individual or HUF, Section 194M - Payment of certain sums by certain individuals or Hindu undivided family, Section 194-O - Payment of certain sums by e-commerce operator to e-commerce participant, Section 194F relating to payments on account of repurchase of units by Mutual Fund or Unit Trust of India
3. Floating Rate Savings Bonds
Floating Rate Savings Bonds, 2020 (Taxable) or any other security of the Central Government or the State Government as may be notified by the Central Government shall be liable for deduction of tax, if the interest payable on such securities exceeds Rs 10,000 during the financial year. This amendment will take effect from 1st October, 2024.
4. Security Transactions Tax On F&O
Security Transactions Tax on futures and options of securities is proposed to be increased to 0.02 per cent and 0.1 per cent respectively.
5. Share Buy Back
For reasons of equity, government will tax income received on buy back of shares in the hands of the recipient from 1st of October.
6. Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024
Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, will come into force with effect from 1 October 2024. The Direct Tax Vivad Se Vishwas Scheme provides for lesser settlement amounts for a ‘new appellant’ in comparison to an ‘old appellant’. The DTVSV Scheme also provides for lesser settlement amounts for taxpayers who file declaration on or before 31.12.2024 in comparison to those who file thereafter.
