Several significant changes to your income taxes will take effect on October 1. In the Union Budget 2024, there were few changes made to Aadhaar card, STT, TDS rate, Direct Tax Vivad Se Vishwas Scheme 2024. The proposed changes were passed in the Finance Bill.

Here is a look at important tax changes that will come into effect from October 1, 2024.

1. STT
The 2024 budget has increased the securities transaction tax (STT) on Futures & Options (F&O) of securities to 0.02 percent and 0.1 percent respectively and income receipts from share buybacks would be taxed in the hands of beneficiaries.

This amendment is passed and to be made effective from October 1, 2024.

2. Aadhaar
In order to prevent PAN misuse and duplication, effective October 1, the provisions that permit citing an Aadhaar Enrollment ID in lieu of an Aadhaar number, Aadhaar in ITRs, and PAN applications will no longer be applicable.

3. Buy-back of shares

As of October 1, buyback of shares will be subject to shareholder-level taxes, much like dividends. This will result in a higher tax burden for investors. Additionally, the shareholder's acquisition costs of these shares will be taken into account when calculating any capital gains or losses.