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Income Tax Rules: In the Union Budget presented on July 23 this year, the government had announced many new rules. Most of these rules are related to income tax. These rules are going to be implemented from next month i.e. 1st October. If you know about these in advance then you will not face any problem. Let us know about these in detail.
Higher STT on F&O trades
Securities Transaction Tax (STT) on futures and options (F&O) trades will increase from October 1. This was announced by Finance Minister Nirmala Sitharaman in the Union Budget on July 23. The government has decided to increase STT to curb the participation of retail investors in F&O trading. STT is a tax that is levied on buying and selling securities. Securities include shares, futures, and options. STT on option premium will increase to 0.1 percent. STT on futures will increase to 0.02 per cent of the trade price.
TDS on interest received from government bonds
From October 1, 10 percent TDS will be applicable on the interest on some bonds of central and state governments. These will also include floating rate bonds. The government had announced this in the Union Budget this year. Till now government bonds were out of the scope of TDS. Experts say that government bonds falling under the ambit of TDS will impact their returns. However, there is a limit of Rs 10,000 for TDS. This means that if the amount received as interest from government bonds in a year is less than Rs 10,000, then it will not come under the purview of TDS.
New tax rules on share buyback
The new tax rules on share buyback will come into effect from October 1. Now investors participating in share buyback will have to pay tax on capital gains. Earlier, investors did not have to pay tax on capital gains if they participated in share buyback. Experts say that this may affect the participation of investors in the share buyback program.
New rules for Aadhaar
From October 1, people will not be allowed to use Aadhaar enrollment to apply for Permanent Account Number (PAN) or file income tax returns. The government has taken this decision to prevent cases of misuse of PAN.
Direct Dispute to Trust Scheme 2024
The Direct Dispute to Trust Scheme 2024 of the Income Tax Department will start from the 1st of next month. Under this scheme, taxpayers will get the facility to settle pending tax cases by paying less penalty and less interest. Taxpayers whose tax cases are pending in the appellate authorities, High Court or Supreme Court till July 22, 2024 will be able to avail the benefits of this scheme.