Outlook Money
From the new security transaction tax (STT) rule, to and direct tax vivad se vishwas scheme, October has some major changes in personal finance.
The security transaction tax on futures and options trading is set to increase from October 1. The STT will increase from 0.025 per cent to 0.1 per cent of option premium. On the other hand, the STT on futures will increase from 0.0125 per cent to 0.02 per cent of the trade price.
From October 1, there will also be changes to the post-office small savings account (POSSA). While the first account will continue to earn interest at the prevailing interest rate, the second will earn interest at the POSSA rate, along with an additional 200 basis points.
There will be rule changes for PPF also. These changes include updated guidelines for PPF accounts for minors. There are guidelines for individuals with multiple PPF accounts.
The tax burden for buybacks will shift from companies to shareholders from Oct 1. The new rules includes the tax buyback proceeds as dividend income based on the shareholder’s income tax slab. These also include companies deducting tax at source at 10 per cent for resident individuals and 20 for non-resident individuals.
This scheme will bring more certainty to taxpayers and reduce litigation. The Central Board of Direct Taxes (CBDT) has notified the Direct Tax Vivad Se Vishwas Scheme, 2024 will resolve pending appeals in the case of income tax disputes. The said scheme shall come into force with effect from 1st Oct. 2024.
Compiled by Syed Muskan