On July 23rd, the central government announced several new regulations in the Union Budget presented by Finance Minister Nirmala Sitharaman. Most of these regulations pertain to income tax. These rules will come into effect from October 1st.
The Securities Transaction Tax (STT) on Futures and Options (F&O) trading will be increased starting from October 1. Finance Minister Sitharaman announced this in the central budget. The government has decided to raise the STT to curb the participation of retail investors in F&O trading. STT is a tax imposed on the purchase and sale of securities. For options premiums, the STT will be increased to 0.1%, and for futures premiums, it will be 0.02% of the trade value.
TDS on Interest from Government Bonds: Starting from October 1, a 10% TDS will be applicable on certain central and state government bonds, including floating-rate bonds. This was announced by the government in this year’s central budget. Until now, government bonds were exempt from TDS.
The Income Tax Department’s Direct Dispute to Trust Scheme 2024 will commence from the first day of the coming month. Under this scheme, taxpayers will have the opportunity to resolve their pending cases by paying reduced penalties and interest. Taxpayers whose tax disputes were pending before appellate authorities, High Courts, or the Supreme Court as of July 22nd can benefit from this scheme.
