New Rules Effective October 1, 2024: 10 Major Changes Impacting Everyday Life
As we welcome October, several important changes are set to take effect across the country, directly affecting the lives of ordinary citizens. From LPG prices to banking holidays and mobile regulations, these new rules aim to enhance convenience and safety. Here’s a rundown of the key changes coming into effect on October 1, 2024.
1. New LPG Cylinder Prices
Government oil companies typically revise LPG cylinder prices on the first day of each month. As such, you can expect to see new prices for LPG cylinders on the morning of October 1. The revised prices are usually announced around 6 AM. Recently, the prices of 19 kg commercial gas cylinders have fluctuated, while the 14 kg domestic cylinder prices have remained stable.
2. New TRAI Regulations for Mobile Users
The Telecom Regulatory Authority of India (TRAI) is implementing new rules starting October 1 that will benefit mobile users. These changes will provide users with information about available networks in their area and reduce the number of spam calls. TRAI has instructed telecom companies like Jio, Airtel, Vodafone, and BSNL to create a list of spam calls and to send secure URLs or OTP links only through messages. This initiative aims to combat online fraud and scams.
3. 15 Bank Holidays in October
According to the Reserve Bank of India (RBI), there will be a total of 15 bank holidays in October 2024. This includes Gandhi Jayanti, Durga Puja, and weekly holidays. Notably, there will be two Saturdays and four Sundays during this month when banks will be closed.
4. Changes to Sukanya Samriddhi Accounts
Starting October 1, new rules will be applied to the Sukanya Samriddhi Yojana accounts. According to these regulations, accounts that were not opened by the girl's parents or legal guardians must now be transferred to their names in compliance with the new guidelines. Only legal guardians or natural parents will be permitted to open and close accounts under the Sukanya Samriddhi Yojana. If multiple accounts are opened, any additional accounts will be closed.
5. Securities Transaction Tax (STT) Changes
The Securities Transaction Tax on Futures and Options (F&O) trading will increase to 0.02% and 0.1%, respectively. Furthermore, taxes will be levied on earnings from share buybacks based on the beneficiary's taxable income. This change, effective October 1, aims to reduce speculative activity in the rapidly growing derivatives market.
6. Changes to PAN-Aadhaar Linking
The 2024 Union Budget proposed eliminating the provision that allows the use of Aadhaar enrollment IDs instead of Aadhaar numbers. Starting October 1, 2024, individuals will no longer be able to mention their Aadhaar enrollment IDs in their PAN application forms or income tax returns to prevent misuse and duplication of PAN.
7. Tax on Share Buybacks
From October 1, taxes will be imposed on share buybacks at the shareholder level, similar to dividend taxation. When calculating capital gains or losses, the acquisition costs of these shares will also be considered. This change increases the tax burden on shareholders opting for buybacks, as direct taxes will now be applied to capital gains.
8. TDS on Floating Rate Bonds
According to the 2024 Budget announcement, starting October 1, TDS at a rate of 10% will be deducted from floating rate bonds issued by central and state governments. However, if the annual earnings are less than ₹10,000, no TDS will be deducted.
9. Changes in TDS Rates
TDS rates have been reduced under Sections 194DA, 194H, 194-IB, and 194M. The TDS rate for these sections will decrease from 5% to 2%, while the rate for e-commerce operators will drop from 1% to 0.1%.
10. Direct Tax Dispute Resolution Scheme 2024
The Central Board of Direct Taxes (CBDT) has announced the Direct Tax Dispute Resolution Scheme 2024, aimed at settling pending income tax disputes. This scheme will come into effect on October 1, 2024.
Under this scheme, taxpayers who opt for settlement between October 1 and December 31, 2024, must pay either the full disputed tax amount or 25% of the disputed interest, penalty, or fee. Taxpayers who choose to settle after December 31, 2024, will need to pay 110% of the disputed tax amount or 30% of the interest, penalty, or fee. For cases where the department has filed an appeal, the settlement amount will be halved.
These changes mark significant shifts in regulations that could impact many aspects of daily life, from financial transactions to tax obligations.
