The Securities Transaction Tax (STT) for futures and options (F&O) trading will increase from October 1, 2024. The tax rates for Futures & Options (F&O) of securities will rise to 0.02% and 0.1%, respectively.

Further, income received from share buybacks will now be taxed based on the beneficiaries’ taxable income.

The Direct Tax Vivad Se Vishwas Scheme, 2024, will also come into effect on October 1. This Scheme offers taxpayers a way to settle specific pending tax disputes. It was introduced in 2020 to handle pending tax appeals and has been modified for 2024.

Starting October 1, 2024, the Aadhaar Enrolment ID provision will be discontinued, meaning individuals will no longer be able to quote their Aadhaar Enrolment ID in the application form for PAN allotment and in their income tax returns.

In the 2024-25 union budget, a significant update was made regarding tax deductions at source (TDS) for central and state government bonds, including floating-rate bonds. Effective October 1, 2024, a TDS of 10% will be applicable to these specified bonds. 

The new TDS regulation also encompasses the Floating Rate Savings Bond, with no TDS being deducted if the revenue earned within the year is less than Rs 10,000. TDS will only be deducted once the income surpasses the Rs 10,000 threshold limit. 

Additionally, there is a proposal to modify Section 193 of the Income Tax Act, 1961 to impose TDS on the Floating Rate Savings Bond, 2020 (Taxable) and any other security issued by the Central or State Government, subject to notification by the Central Government.

These changes were introduced in the Union Budget 2024 and will be effective from October 1, 2024.

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