01/10/2024
🚨 6 Key Tax Changes Effective from October 1, 2024 🚨
The Union Budget 2024 introduced several amendments impacting taxpayers, with key changes set to take effect from October 1, 2024. Below are the major updates:
1. Securities Transaction Tax (STT) 📊
The STT on Futures and Options (F&O) trading has been increased to 0.02% and 0.1%, respectively.
Income from share buybacks will now be taxed in the hands of the beneficiaries.
2. Aadhaar Card 🆔
The use of an Aadhaar Enrollment ID instead of an Aadhaar number for filing ITRs and PAN applications will no longer be permitted, aiming to prevent PAN misuse and duplication.
3. Share Buybacks 📉
Share buybacks will be taxed at the shareholder level, similar to dividends. The acquisition cost of shares will be considered for calculating capital gains or losses.
4. Floating Rate Bonds TDS 💼
A 10% TDS will apply to specified central and state government bonds, including floating rate bonds, if the annual income exceeds Rs 10,000.
5. TDS Rate Changes 💰
TDS rates for payments under sections 194DA, 194H, 194-IB, and 194M have been reduced from 5% to 2%.
TDS for e-commerce operators reduced from 1% to 0.1%.
Specific updates include:
Section 194DA: Life insurance policy payments
Section 194H: Commission or brokerage
Section 194-IB: Rent payments by individuals or HUFs
Section 194M: Payments by individuals or HUFs
6. Direct Tax Vivad Se Vishwas Scheme 2024 📝
The CBDT has launched a new scheme to resolve income tax disputes, offering reduced settlement amounts for taxpayers who file declarations before December 31, 2024.
Stay informed and ensure compliance with these important changes to avoid any last-minute rush!
