From LPG price to income tax rules: Major changes that will impact middle class from October 1

As the month of October approaches, several important changes will take effect regarding income tax, Aadhaar Card rules, and taxation on mutual funds, LPG price, rents, and futures and options (F&O). Here’s what you need to know about the key updates.

Aadhaar Card and PAN Allotment Changes

Starting October 1, individuals will no longer be required to mention their Aadhaar enrollment ID when applying for a Permanent Account Number (PAN) or filing income tax returns. This change comes from the government’s decision to simplify the process and eliminate the need for the enrollment ID.

Updates to Small Saving Schemes

Also on October 1, new regulations for post office small saving schemes, including the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana, will be implemented. The Ministry of Finance will regulate accounts opened in minors' names, multiple PPF accounts, and extensions of PPF accounts for Non-Resident Indians (NRIs).

Changes in Tax Deducted at Source (TDS)

In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced significant updates to income tax rules, effective October 1. A 10% TDS will be applicable on certain central and state government bonds. The rules regarding TDS for life insurance policies, house rent payments, and other areas will also change.

Increase in Securities Transaction Tax (STT)

The Securities Transaction Tax on futures and options will rise starting October 1. The STT on the sale of options will increase from 0.0625% to 0.1% of the premium, while the tax on futures will go up from 0.0125% to 0.02% of the trade price.

These changes aim to streamline processes and ensure better compliance with tax regulations.