You Won't Need Aadhaar To Apply For PAN Card From Today

New Financial Rules: These proposed adjustments have now been passed in the Finance Bill.

Financial Rules October 2024: Several key changes to income taxes will come into effect on October 1. As outlined in the Union Budget 2024, modifications were made to the Aadhaar card, Pan Card, Securities Transaction Tax (STT), TDS rates, and the Direct Tax Vivad Se Vishwas Scheme 2024. These proposed adjustments have now been passed in the Finance Bill.

Let’s take a look at the key financial changes that will come into effect from October 1, 2024:

• Securities Transaction Tax (STT): The 2024 budget increased the STT on Futures and Options (F&O) of securities to 0.02% and 0.1%, respectively. Additionally, income received from share buybacks will now be taxed at the beneficiary level. These changes passed in the Finance Bill, will be implemented from October 1, 2024.
• Aadhaar: To prevent PAN misuse and duplication, starting October 1, provisions allowing the use of an Aadhaar Enrollment ID in place of an Aadhaar number, as well as Aadhaar details in ITRs and PAN applications, will no longer apply.
• Share Buybacks: From October 1, share buybacks will be taxed at the shareholder level, similar to dividends. This will increase the tax burden on investors, as the acquisition cost of shares will now be factored in when calculating capital gains or losses.
• TDS on Floating Rate Bonds: Starting October 1, 2024, a 10% tax deducted at source (TDS) will apply to specific central and state government bonds, including floating rate bonds. However, TDS will only apply if the income exceeds Rs 10,000 in a year.
• TDS Rates: The Union Budget 2024’s proposed TDS rate changes were approved. TDS for payments under sections 19DA, 194H, 194-IB, and 194M has been reduced from 5% to 2%. The TDS rate for e-commerce operators has been cut from 1% to 0.1%.
• 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 on October 1. This scheme aims to reduce income tax litigation by allowing taxpayers to resolve ongoing disputes, including appeals pending in the Supreme Court, high courts, and other appellate authorities as of July 22, 2024.