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Several proposals announced by Finance Minister Nirmala Sitharaman in the Budget 2024-25 will take effect from October 1, 2024. Here are the key changes:
- Aadhaar Enrolment ID No Longer Required
The government will stop requiring the Aadhaar Enrolment ID and will only need the Aadhaar number from October 1, 2024. - Changes in Tax Deducted at Source (TDS) Rates
TDS rates will be reduced from 5% to 2% for specific categories, and the 20% rate under section 194F will be removed. Here are the changes:- Section 194DA (Life insurance policy payments): From 5% to 2%
- Section 194G (Commission on lottery tickets): From 5% to 2%
- Section 194H (Commission or brokerage payments): From 5% to 2%
- Section 194-IB (Rent payments): From 5% to 2%
- Section 194M (Certain payments by individuals or Hindu undivided families): From 5% to 2%
- Section 194-O (Payments by e-commerce operators): From 1% to 0.1%
- Section 194F (Repurchase of mutual fund units): This section will be removed.
- Tax on Floating Rate Savings Bonds
Interest on Floating Rate Savings Bonds will be taxable if it exceeds ₹10,000 in a financial year. This rule starts on October 1, 2024. - Increased Security Transactions Tax on Futures and Options
The tax on futures and options will rise to 0.02% and 0.1%, respectively. - Tax on Share Buybacks
Income from share buybacks will be taxed starting October 1, to ensure fairness. - Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024
This scheme will begin on October 1, 2024, allowing lower settlement amounts for new appellants compared to old ones. Taxpayers who file declarations by December 31, 2024, will also benefit from reduced settlement amounts.
These changes aim to simplify tax procedures and make compliance easier for taxpayers.
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