As we enter October 2024, significant changes in financial regulations will affect transactions, investments, and compliance processes. To manage your finances effectively and stay compliant, you must be aware of these updates. Here’s a detailed look at seven key changes happening this month, including new rules for Aadhaar, PAN, small savings schemes, and more.
1. Aadhaar-PAN Linking Update
Starting October 1, 2024, individuals won’t need to use their Aadhaar enrolment ID when applying for a Permanent Account Number (PAN) or filing tax returns. Previously, Section 139AA of the Income Tax Act required everyone eligible for Aadhaar to link it with their PAN. The new change simplifies the tax filing process and reduces paperwork, making it easier for taxpayers to comply with the rules.
2. Bonus Shares Trading Now Streamlined
The Securities and Exchange Board of India (SEBI) has introduced a faster process for trading bonus shares. Beginning October 1, 2024, investors can trade bonus shares two days after the record date under the new T+2 settlement cycle. This will speed up market liquidity and help shareholders access their bonus shares more quickly.
3. Small Savings Schemes Get Updated Guidelines
In October 2024, new rules will affect several small savings schemes managed through post offices. The Ministry of Finance is targeting improperly opened accounts, such as those under the Public Provident Fund (PPF) and Sukanya Samriddhi Account (SSA). It is also clarifying rules for accounts opened in minors’ names and addressing cases where non-resident Indians (NRIs) extended their PPF accounts. These updates ensure better compliance and transparency for both investors and financial institutions.
4. Securities Transaction Tax (STT) Hike on F&O Trading
From October 1, 2024, the government will increase the Securities Transaction Tax (STT) on futures and options (F&O) trading. The STT on the sale of options will rise from 0.0625% to 0.1%. For example, if the premium is ₹100, traders will now pay ₹0.10 instead of ₹0.0625. This change, introduced in the 2024 Union Budget, aims to reduce speculative trading in the booming derivatives market.
5. Indian Railways Intensifies Ticket Checks
To combat ticketless travel, Indian Railways will launch a special drive in October 2024. With the holiday season approaching, the Railways expect an increase in passengers and plan to crack down on those traveling without tickets. This effort will lead to stricter enforcement, ensuring smoother and more legitimate travel for everyone.
6. Post Office Savings Account Interest Rates Adjusted
From October 1, 2024, interest rates for several Post Office savings schemes under the National Small Savings (NSS) will change. The government conducts periodic reviews of these rates to reflect market conditions. If you have a Post Office savings account, check these new rates to understand how they might impact your returns.
7. Direct Tax Vivad Se Vishwas Scheme 2024
The Central Board of Direct Taxes (CBDT) will launch the Direct Tax Vivad Se Vishwas Scheme 2024 on October 1. This program offers a way for taxpayers to settle ongoing disputes related to income tax, including cases in the Supreme Court and other appellate bodies. The goal is to reduce litigation and provide a quicker resolution for those involved in tax-related legal battles.
These financial rule changes are crucial for improving transparency, simplifying processes, and managing taxes and investments more effectively. To stay on top of your finances, familiarize yourself with these updates and adapt your financial strategy as needed.
