New Rules to be Effective from 1 October 2024
As we step into October, several key rules regarding income tax, Aadhaar Card, TDS, and other financial regulations are set to change. From TDS adjustments on mutual funds and rent to updated rules for futures and options (F&O), here’s a detailed overview of the upcoming changes you need to know.
1. Aadhaar Card Rule Related to PAN Allotment
Starting from 1 October 2024, individuals will no longer be required to disclose their Aadhaar Enrollment ID in PAN allotment documents. This shift in the process simplifies PAN allotment and tax return filing as Aadhaar details will not need to be disclosed.
2. Floating Rate Savings Bonds
Beginning 1 October 2024, interest earned on Floating Rate Savings Bonds, 2020 (Taxable), or any other central or state government securities, will be subject to tax deduction at source (TDS) if the interest exceeds Rs 10,000 annually.
3. Changes in TDS Rates
Some key amendments in the TDS regime will take effect from October 2024, as outlined in the Union Budget 2024. Here’s a look at the updated TDS rates:
| Section | Present TDS Rate | Proposed TDS Rate |
| Section 194DA – Payment in respect of life insurance policy | 5% | 2% |
| Section 194G – Commission etc on sale of lottery tickets | 5% | 2% |
| Section 194H – Payment of commission or brokerage | 5% | 2% |
| Section 194-IB – Payment of rent by individual or HUF | 5% | 2% |
| Section 194M – Payment of certain sums by certain individuals or Hindu undivided family | 5% | 2% |
| Section 194-O – Payment of certain sums by e-commerce operator to e-commerce participant | 1%
|
0.1% |
| Section 194F relating to payments on account of repurchase of units by Mutual Fund or Unit Trust of India | To be Omitted | |
4. Taxation on Share Buybacks
From 1 October 2024, the government will impose a tax on income generated from share buybacks. This tax will be levied on the income received by shareholders, ensuring equitable tax treatment.
5. Direct Tax Vivad Se Vishwas (DTVSV) Scheme 2024
The Direct Tax Vivad Se Vishwas Scheme, 2024, will be enforced from 1 October 2024. The scheme offers reduced settlement amounts for new appellants and for those who file their declarations before 31 December 2024, compared to those who file later.
6. National Small Savings Schemes (NSS)
From 1 October 2024, all irregular National Small Savings Scheme accounts, including those under NSS-87 and NSS-92, will earn a zero percent interest rate. Account holders should ensure their accounts comply with current regulations to avoid this penalty.
7. Hike in Securities Transaction Tax (STT)
The Securities Transaction Tax (STT) on futures and options (F&O) is set to increase starting 1 October. The new rates are:
- STT on sale of options: 0.1% (up from 0.0625%)
- STT on sale of futures: 0.02% (up from 0.0125%)
8.HDFC Credit Card Rewards Changes
Effective from 1 October 2024, HDFC Bank will limit reward points redemptions for Apple products to one product per calendar quarter via the SmartBuy platform. This change applies to select credit cards in their loyalty program.
9. ICICI Bank Debit Card Airport Lounge Access
ICICI Bank customers can enjoy complimentary airport lounge access starting 1 October, provided they spend Rs 10,000 in the previous calendar quarter. For access in the October-December quarter, customers must meet the spending requirement between July and September 2024.
10. RBI’s Key Facts Statement (KFS) for Retail and MSME Loans
From 1 October 2024, the Reserve Bank of India (RBI) mandates that banks and lenders provide borrowers with a Key Facts Statement (KFS) outlining all loan terms, including the all-inclusive interest cost. This rule applies to retail and MSME loans, ensuring transparency for borrowers.
These changes, effective from 1 October 2024, mark significant shifts in taxation, financial products, and banking regulations. Ensure you’re updated and compliant with the new rules to avoid any surprises.
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Also Read: CBDT Notifies Rules and Forms for Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024
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