Tax Rule Change: 6 rules related to income tax will be changed tomorrow, this will directly benefit the common man and businessmen. After the change in tax rules from October 1, paying life insurance premium and rent will also become cheaper.
The government is also going to change the rules related to Aadhaar from October 1. Now Aadhaar number will have to be entered in place of Aadhaar enrollment number. Its purpose is to quickly access customer related information, so that services linked to Aadhaar can be expedited and any kind of duplication can also be avoided.
The government is also changing the tax deduction at source (TDS) rules and will reduce its rates. TDS on many services will be reduced from 5 to 2 percent. Also, the 20 percent TDS levied under section 194F will also be abolished. Currently, there is 5 percent TDS on premium payment of life insurance policy, which will be reduced to 2 percent. TDS on lottery ticket commission will also be reduced from 5 to 2 percent. TDS on rental payment will also be reduced from 5 to 2 percent. TDS on repurchasing of mutual funds will also be reduced by 3 percent.
If the annual interest on floating rate saving bonds or other government securities is more than 10 thousand, then tax will have to be paid on it. The government is now preparing to levy tax on this type of investment as well. This will be exactly like FD, on which tax is levied if the annual interest is more than 40 thousand rupees.
Those trading in securities futures will now have to pay security transaction tax at the rate of 0.02 per cent, while those trading in options will have to pay it at the rate of 0.1 per cent.
From October 1, the government will collect tax from the investors who benefit from the company’s share buyback, whereas till now the company doing the buyback had to pay it. Obviously, this burden is going to increase on the investors participating in the share buyback.
The government is once again implementing the Vivaad se Vishwas Yojana from October 1. Under this, the resolution of tax disputes will be expedited. In this second version of the scheme, more exemptions will be given as compared to the old applicants. The government has also said that more benefits will be given to those who apply for it before December 31.
