Securities Transaction Tax (STT) on Futures and Options (F&O) trades will increase from October 1. New rules for tax on share buyback will come into effect from October 1. From October 1, 10 percent TDS will be applicable on interest on certain bonds of the central and state governments. These will also include floating rate bonds.
Many rules related to investment, savings and tax are going to change from October 1. Some of these were announced in the Union Budget presented in July this year. If you are a taxpayer, investor, then it is important for you to know about them. People who save will also benefit from knowing about them. Let us know about them in detail.
Change in PPF rules for NRIs
PPF rules for NRIs will change from October 1. NRIs who are investing in PPF without disclosing their status will not get interest on their investment from October 1.
New rules for HDFC Bank Infinia Credit Card
The rules for rewards redemption for HDFC Bank’s Infinia credit card will change. This will change the rules for redemption of Apple products and Tanishq vouchers through HDFC SmartBuy. From October 1, Infinia cardholders will be able to redeem points on only one Apple product every quarter.
Banks and NBFCs will issue KFS
Banks and NBFCs will have to issue Key Fact Statement (KFS) to customers from October 1. This will help customers understand the total fees and charges they will have to pay on the loan.
New rules will be applicable on old policies of insurance companies
The rules related to the new products will also be applicable on old and existing policies of life and health. Insurance regulator IRDAI implemented these rules in March. Insurance companies were given time till 30 September to implement these new rules on old and existing policies. This means that if you already have a policy, then new clauses will be included in it at the time of its renewal.
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You will get more money if you surrender the policy
The insurance regulator had said in June that if a policyholder exits after one year, the insurance company will have to pay special surrender value. This rule will come into effect from October 1. Earlier, the entire premium of the policyholder was lost if he exited after one year.
Relief from 20% TDS on repurchase of mutual fund units
The 20% TDS applicable on repurchase of units by mutual funds or UTI will no longer have to be paid. This rule will come into effect from October 1. Its purpose is to reduce the tax burden on investors.
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 options premium will increase to 0.1 percent. STT on futures will increase to 0.02 percent of the trade price.
TDS on interest on government bonds
From October 1, 10 percent TDS will be applicable on the interest of certain bonds of the central and state governments. These will also include floating rate bonds. This was announced by the government in the Union Budget this year. Till now, government bonds were outside the scope of TDS. Experts say that government bonds coming under the scope of TDS will affect their returns. However, there is a limit of Rs 10,000 for TDS. This means that if the amount of interest from government bonds in a year is less than Rs 10,000, then it will not come under the scope 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 on participating in share buyback. Experts say that this may affect the participation of investors in the share buyback program.
New rules of Aadhaar
From October 1, the use of Aadhaar enrolment IT will not be allowed for applying for Permanent Account Number (PAN) or filing income tax returns. The government has taken this decision to prevent cases of misuse of PAN.
Direct Dispute to Trust Scheme 2024
The Income Tax Department’s Direct Dispute to Vishwas Scheme 2024 will open 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 benefit of this scheme.
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