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Income Tax Update: Starting October 1, 2024, several important changes in tax rules will take effect in India, covering TDS rates, STT, and Aadhaar usage:
The STT on futures will rise to 0.02% while on options it will rise to 0.1%. Also, dividends received through repurchases will be taxed at the shareholder level as is the case with dividends.
Now the Aadhaar enrolment ID cannot be used as an Aadhaar number to file income tax returns (ITR) or for PAN applications. This is to eliminate cases of duplicity and / or fraudulent use of the PANs.
TDS on maturity benefits in life insurance business has been reduced to 2 percent from 5 percent thereby permitting policy holders availing of maturity amounts to keep a higher proportion with them.
Dividend buybacks will now be taxed under the shareholder tax regime. That means capital gains or losses of investors will be based on the cost of the stocks bought and held by the investors.
An additional 10% TDS will be levied if the income is earned from specific central and state government bonds where the income in the FY from such bonds is more than ₹ 10,000.
Thus, decision rules of TDS have released some categories by reducing the rates like life insurance claim, commission, rent, etc., and deals of e-commerce site. For example, the TDS on e-commerce has been lowered from 1 percent to 0.1 percent;
This new scheme starts from October 1, 2024, to clear outstanding tax appeals and allows new applicants to receive less money.
DISCLAIMER: The information provided in this article is intended for general informational purposes only and is based on the latest guidelines and regulations. While we strive to ensure the accuracy and completeness of the information, it may not reflect the most current legal or regulatory changes. Taxpayers are advised to consult with a qualified tax professional or you may contact to our tax advisor team through call +91-9871990777 or info@semantictaxgen.in