New Rules form October 1 : The month of October is starting from Monday. The new month is bringing with it many changes. Many such important changes are going to happen from October 1, which will have a direct impact on the pockets of the common man. These changes include everything from Aadhaar, credit card to stock market. You can check the details of all the changes going to happen from next month one by one here.
These important tasks will not be done with Aadhaar enrollment number
Apart from this, important changes are going to happen regarding Aadhaar from October 1. Under this, Aadhaar enrollment number will not be allowed to be used for making PAN or filing tax return. According to the new rule, it will now be mandatory to have the original copy of the Aadhar card for such work. The purpose of this change is to prevent the use of fake Aadhaar numbers. The new rules of Aadhaar card will help in preventing fraud and increase transparency in financial transactions. It is important for all people to be aware of this new rule so that they can avoid any inconvenience by updating their documents on time.
HDFC Bank changed the limit for redeeming reward points
HDFC Infinia Credit Card is a premium metal card designed keeping in mind the high income people. HDFC Bank has set a new limit for redeeming reward points for Infinia credit cardholders from October 1. After this decision of the bank, redemption for Apple products and Tanishq vouchers through the SmartBuy platform promoted by HDFC Bank will be affected. From October 1, HDFC Infinia Credit Card users will be allowed to redeem points for only one Apple product per calendar quarter. Starting October 1, Infinia and Infinia Metal Card users will be able to redeem their reward points for only one Apple product per calendar quarter. Calendar quarters are defined as January–March, April–June, July–September, and October–December. Currently, there was no limit for cardholders to redeem reward points for Apple products. Similarly, HDFC Bank has imposed a limit of 50,000 points per calendar quarter on redemption of reward points for Tanishq vouchers.
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Loan borrowers will get loan rate statement on KFS
From October 1, it will be easier for borrowers to know how much their loan costs as KFS or Key Facts Statement will be issued by banks and non-banking financial companies (NBFCs). KFS is a simple and easy to understand summary that covers all the important terms as well as all the fees and charges associated with the loan. According to an order by RBI, it is necessary for KFS to be written in such a language which the person taking the loan can easily understand.
Now you will get more refund on closing pre-mature policy
In June, through a master circular on life insurance plans, insurance regulator IRDAI said life insurance companies will have to pay a special surrender value, even if the policyholder exits after the first year. The new plans are as per this rule, but IRDAI has set September 30 as the last date to withdraw or re-file the existing policies which are not following the rules. Compared to the current situation, the surrender value (which is the amount received on early exit) will increase for policyholders who opt for early exit due to realization of wrong sales or inability to pay the premium. Earlier, policyholders who exited after the first year had to give up their entire premium. But under the new rules, they will get a partial refund of their premium.
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Rules will change for NRI and children’s PPF accounts
There are some special rules for non-resident Indians (NRIs) for maintaining a PPF account. For NRIs who were investing in PPF account without disclosing their status, now everything will not be the same as before. Post Office Savings Account interest rate will be available on these accounts from July 12 to September 30. From October 1, no interest will be available on this account. The government has also announced several changes related to the old NSS and Sukanya Samriddhi accounts.
CBDT’s direct tax dispute trust scheme will be implemented
The Central Board of Direct Taxes (CBDT) has announced the Direct Tax Vivad Se Vishwas Scheme 2024, which will come into effect from October 1. This year, during the budget speech, Finance Minister Nirmala Sitharaman had announced this scheme. The Income Tax Department’s ambitious scheme Vivad se Vishwas Scheme 2024 will now open from the 1st of October. Under this, pending tax cases can be settled. In this, the income tax payer will get an opportunity to pay penalty and interest etc.
The objective of the Direct Tax Vivad Se Vishwas scheme is to simplify, speedy resolution of direct tax disputes and reduce litigation and its expenses. Due to this dispute, there is a provision of lower settlement amount for the new appellants in the Vishwas Scheme as compared to the old appellants. Apart from this, taxpayers who file their declaration by December 31 will also get the benefit of lower settlement amount.
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20% TDS will be removed on re-purchase of mutual fund units, tax burden will reduce.
To fine-tune Tax Deducted at Source (TDS) rates, Finance Minister Nirmala Sitharaman proposed during her Budget 2024 speech to remove the 20 per cent TDS rate on re-purchase of units by mutual funds or Unit Trust of India (UTI). Is kept. This change will also come into effect from October 1. The Finance Act, 2024 has removed Section 194F of the Income Tax Act, which was related to re-purchase of units by a mutual fund or UTI. According to this section, any person who is making payment to anyone at the time he is paying any amount mentioned in sub-section (2) of section 80CCB, should charge tax at the rate of 20 percent. Removal of 20 percent TDS rate on re-purchase of mutual fund units is a step towards reducing the tax burden for investors.
Tax burden on shareholders will increase
New rules regarding share buyback are going to come into effect from October 1. Tax authorities have made important changes in the rules of buyback taxation. Previously, companies undertaking buybacks had to pay buyback tax at the rate of 20% on distributed income, leading to buyback income tax fees for investors. The new rule on share buyback will come into effect from October 1. Under the new rule, the responsibility of tax has shifted from companies to shareholders. Now investors will have to pay tax on the income earned by participating in the share buyback process. Earlier this rule was not there. From October 1, 2024, the amount paid on buyback will be treated as dividend and the shareholder will be taxed as per the slab.
From October 1, the amount received from buyback will be treated as dividend income and not capital gain, and will be taxed as per the income tax slab of the investor. This change will affect the shareholders, who will now have to bear the tax burden. Companies commonly used buybacks to distribute additional funds to shareholders. Start-up employees may also see a significant increase in tax on disposal of their employee stock options (ESOPs) through buyback from October 1.
In the budget speech of 2024, Finance Minister Nirmala Sitharaman had said that a new tax regime is going to be implemented on share buyback. Under the new rule, if an investor gets benefit from share buyback then it will be considered as dividend. Now tax will be imposed on the basis of dividend. Capital gain or loss will be calculated according to the amount the shareholder will receive in share buyback.
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Bonus share credit and trading will increase
Market regulator Securities and Exchange Board of India (SEBI), through a circular issued on September 16, has talked about implementing T + 2 system with the aim of speeding up bonus shares credit and trading, here T means record date. This new rule on bonus share trading is coming into effect from October 1. Till now i.e. till 30 September 2024, trading of all bonus shares has been happening only about 2 weeks after the record date. But trading of all bonus shares issued on or after October 1 will start 2 days after the record date.
According to the circular issued, market regulator SEBI has also decided to reduce the time of bonus share credit. From October 1, the bonus share credit time will reduce to 2 days. That means, bonus shares will be available within 2 days of the record date and trading will start 2 days after the record date.
The record date is the cut-off date used by the company to decide which shareholders are eligible to receive bonus shares. Bonus shares are issued without any additional cost to the shareholders and hence are also called free shares. Only those investors who buy shares before the ex-date will be eligible for Bonus Shares. If an investor purchases shares on or after the ex-date, he will not be eligible to receive bonus shares.
