Financial Rules October 2024: These changes will be effective from October 1, 2024
Financial Rules October 2024: Starting October 1, several important rules and regulations related to Aadhaar cards, the Public Provident Fund (PPF), and other financial aspects are set to take effect. Keeping up with these changes is crucial for effective budget management and ensuring compliance with updated guidelines.
Take note of these 7 changes in October 2024, including the Aadhaar update and Small Savings Schemes
Aadhaar Card: Starting October 1, 2024, individuals will no longer need to use their Aadhaar enrolment ID when applying for a Permanent Account Number (PAN) or filing income tax returns. According to the Budget memorandum, Section 139AA of the Income Tax Act mandates that anyone eligible to obtain an Aadhaar number must quote it in the PAN application form and income tax returns, effective from July 1, 2017.
Bonus Shares: The Securities and Exchange Board of India (SEBI) has implemented a new framework to streamline the trading of bonus shares. Effective from October 1, 2024, bonus shares will be eligible for T+2 trading, shortening the time between the record date and when they can be credited and traded.
Small Savings Schemes: The Ministry of Finance's Department of Economic Affairs has issued guidelines for regularizing improperly opened accounts under National Small Savings (NSS) schemes via Post Offices. Irregular accounts will need to be submitted to the Ministry for regularization, and specific guidelines have been laid out for six key categories, including irregular NSS accounts, PPF accounts opened in minors' names, multiple PPF accounts, PPF account extensions by NRIs, and the regularization of Sukanya Samriddhi Accounts (SSA) opened by grandparents instead of guardians.
Securities Transaction Tax (STT): From October 1, 2024, the Securities Transaction Tax on futures and options (F&O) trading will rise. These changes, introduced in the 2024 Union Budget, aim to moderate speculative trading in the booming derivatives market. The STT on option sales will increase from 0.0625% to 0.1% of the premium. For instance, if you sell an option with a premium of Rs 100, the STT will now be Rs 0.10, up from Rs 0.0625.
Indian Railways Special Drive: Indian Railways will launch a special drive against ticketless passengers, given the expected surge in passenger traffic during peak weeks. The Ministry of Railways is introducing this initiative to curb unauthorized travel and enforce stricter ticket-checking procedures.
Post Office Accounts Interest Changes: Effective October 1, 2024, major changes will impact Post Office small savings accounts under the National Small Savings (NSS) schemes. Account holders should be aware of these updates, as they may affect the interest earned on their savings.
Direct Tax Vivad Se Vishwas Scheme 2024: The Central Board of Direct Taxes (CBDT) has announced that the Direct Tax Vivad Se Vishwas Scheme 2024 will come into effect from October 1, 2024. This scheme aims to reduce income tax litigation by allowing taxpayers to settle ongoing disputes, including appeals and petitions pending before the Supreme Court, high courts, and other appellate authorities, as of July 22, 2024.