October 2024: From TDS to Saving Schemes, 13 Changes That Will Impact You

By: Admin | October 01, 2024 | Categories: TAX News | 4 Min Read

As October begins, several important financial changes have taken effect. Here’s what you need to know:

1. Aadhaar and PAN Changes
   Starting today, using the Aadhaar enrolment ID for PAN allotment is no longer allowed.
2. Small Savings Scheme Rules
   Guardians can now open only one PPF account per child. NRIs will no longer earn interest on PPF accounts opened before their residency change.
3. TDS Rate Updates
   Key changes include lower TDS rates for e-commerce, life insurance payouts, rent payments, and lottery commission.
4. TDS on Government Bonds
   TDS on floating rate bonds will be 10% if the annual earnings exceed ₹10,000.
5. TDS on Immovable Property Sales
   A 1% TDS on property sales over ₹50 lakh, even in multi-party transactions.
6. Revised Transaction Charges
   NSE and BSE have updated their transaction fees for equity and derivatives trading.
7. Securities Transaction Tax (STT) Hike
   Trading futures are now taxed at 0.02%, and options at 0.1%.
8. Taxation of Share Buybacks
   Share buybacks will now be taxed as dividends for shareholders.
9. Key Facts Statement for Loans
   Borrowers will receive a “Key Facts Statement” detailing all loan charges and terms for transparency.
10. Health Insurance Changes
    Pre-existing disease waiting periods are reduced to three years, and moratorium periods to five years.
11. Endowment Policies
    Higher surrender values will be available for those terminating their policies early.
12. Faster Trading of Bonus Shares
    Bonus shares can now be traded two days after the record date, enhancing market liquidity.
13. Vivad Se Vishwas 2024
    This scheme allows settlement of direct tax disputes with reduced payments if completed by December 31, 2024.

These updates may affect your financial planning, tax obligations, and investment strategies moving forward.