Revised TDS rates, STT, Aadhaar card rules: 6 income tax Budget 2024 changes applicable from October 1, 2024:

1. STT
   The 2024 budget has increased the securities transaction tax (STT) on Futures & Options (F&O) of securities to 0.02 percent and 0.1 percent respectively and income receipts from share buybacks would be taxed in the hands of beneficiaries.
2. Aadhaar
   In order to prevent PAN misuse and duplication, effective October 1, the provisions that permit citing an Aadhaar Enrollment ID in lieu of an Aadhaar number, Aadhaar in ITRs, and PAN applications will no longer be applicable.
3. Buy-back of shares
   As of October 1, buyback of shares will be subject to shareholder-level taxes, much like dividends. This will result in a higher tax burden for investors. Additionally, the shareholder’s acquisition costs of these shares will be taken into account when calculating any capital gains or losses.
4. Floating rate bonds TDS
   In Budget 2024, it was announced that starting from October 1, 2024, tax deducted at source (TDS) will be deducted at a 10% rate from specified central and state government bonds, including floating rate bonds.
5. TDS rates
   The TDS rates proposed in the Union Budget 2024 were approved in the Finance Bill:
   The TDS rate for payments under sections 19DA, 194H, 194-IB, and 194M was reduced from 5% to 2%. TDS rate reduction for e-commerce operators: The TDS rate for e-commerce operators was reduced from 1% to 0.1%.
   • Section 194DA – Payment in respect of life insurance policy
   • Section 194G -Commission on sale of lottery tickets
   • Section 194H – Payment of commission or brokerage
   • Section 194-IB – Payment of Rent by certain individuals or HUF
   • Section 194M – Payment of certain sums by certain individuals or HUFs
   • Section 194F – Payment on account of repurchase of units by mutual funds or UTI is proposed to be omitted from October 1, 2024.
6. Direct Tax Vivad Se Vishwas Scheme 2024
   The Central Board of Direct Taxes (CBDT) has announced the Direct Tax Vivad Se Vishwas Scheme, 2024 (also known as DTVSV, 2024) to settle outstanding appeals in cases of income tax disputes. Starting on October 1, 2024, the aforementioned Scheme will be implemented.