With the festive season starting, many rules are going to change in tax, insurance, investment, and savings schemes from October 1. These changes will directly affect you. These changes are...
Small savings interest rates will change.
The interest rates of small savings schemes will be revised. The change will apply from October 1 to December. The cycle of reducing interest rates has started, so the rates on these can also be reduced. This will affect your savings.
Vivaad se Vishwas Yojana again
The Central Board of Direct Taxes (CBDT) will restart the Vivaad se Vishwas Yojana. This will help in resolving tax disputes and reducing litigation and related costs. The scheme will run till December 31.
Less tax on life insurance policy money
Section 194DA: Now 2% TDS will be deducted from the amount received on maturity or any contingency of the life insurance policy. Earlier it was 5%.
More value on policy surrender
Now more money will be returned on surrendering the policy, even if the surrender is after the first year. Earlier no money was received in this.
TDS on rent reduced from 5 to 2%
Section 194IB: If some individuals or Hindu Undivided Families pay a monthly rent of Rs 50,000, then now the landlord will have to deduct only 2% TDS on it. Earlier it was 5%. This will now give more money to the landlord.
1% TDS on immovable property
Section 194IA: If the price of immovable property or the value of stamp duty is Rs 50 lakh or more, then 1% TDS will be deducted from it. Whether it is bought by 10 people together or one person.
Relief on selling goods on e-commerce
Section 194O: Now e-commerce companies will have to deduct only 0.01% tax, which was earlier one percent. The financial burden on sellers will be reduced.
More clarity to retail borrowers
Under the new RBI rule, banks and NBFCs will have to explain everything in an easy way in the borrower's language while giving loans. This includes the cost of the loan, interest, terms, and other charges. This will increase transparency.
Waiting period for illness in insurance reduced.
Now the maximum waiting period for health insurance will be three years. Earlier it was four years. This will also be applicable at the time of renewal of the old policy. In the endowment policy, more payment will also be received on early exit.
Buyback: Now investors will have to pay tax
Now investors will have to pay 20% tax in share buyback. Earlier companies used to pay this and the investor's income was tax-free. Buyback income will now be considered a dividend.
Bonus issue will be available within two days from the record date
According to the new rules of SEBI, bonus issues will be available for trading two days after the record date. Currently, it takes two weeks.
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