Tax Rule Change: Rules related to stock market and tax will change from today, it will have a direct impact on the pocket..
Intro: From October 1, i.e. today, many types of financial rules including health insurance, retail loans, share buyback, and bonus shares are going to change, which will have a direct impact on your life. Read this report from the Business Desk regarding these changes.
Clear information will be available regarding the cost of a retail loan.
After the instructions of RBI, it will be mandatory for banks and non-banking financial companies (NBFCs) to give details of key facts to the customers taking retail loans from October 1. This will give customers clear information about the total cost of the loan.
According to RBI, this statement should be in simple form and it should mainly contain information about the fees and other charges related to the loan. Also, this detail should be given to the customers in an easily understandable language.
More premiums will be available on policy surrender.
Now the policyholders will get more money on the insurance policy. According to the Insurance Regulator, insurance companies will have to pay money even if the policy is surrendered after one year. Earlier, no money was received on surrendering the policy after one year.
Apart from this, the maximum waiting period for health insurance purchased from October 1 will be three years. Till now this period was four years. The period for not challenging claims on grounds other than misrepresentation and fraud has been reduced from eight years to five years.
20 percent tax will be levied on share buyback
After October 1, shareholders participating in the share buyback of companies will be taxed at 20 percent. Till now this tax was levied on companies. According to the new rules, the process of buyback will be considered as dividend and the amount received from it will be added to the total income of the shareholders and tax will be levied. Apart from this, startup employees selling the shares received from the company will also have to pay tax.
Trading in bonus shares will be possible after two days
From October 1, trading (buying and selling) in bonus shares given by companies will start two days after the record date. Till now it used to take about two weeks to trade bonus shares.
20 percent TDS will not be levied on repurchasing mutual fund units
From October 1, 20 percent TDS (Tax Deducted at Source) will not be levied on purchasing units of mutual funds or Unit Trust of India (UTI).
Finance Minister Nirmala Sitharaman had announced this in the budget presented in July. This step has been taken to reduce the tax burden on investors.
Apply in Vivaad se Vishwas 2.0
Applications can be made from October 1 in the Vivaad se Vishwas 2.0 scheme launched to settle pending tax disputes. This scheme has been launched to reduce the number of tax-related cases. To avail of the benefits of this scheme, applications can be made till 31 December 2024.
Such PPF accounts of NRIs will be closed
No. N-resident Indians (NRIs) are allowed to invest in Public Provident Fund (PPF) accounts. The account holder must be informed about being an NRI while opening a PPF account.
The accounts of those account holders who have not been informed about being NRI will be closed from October 1. The amount deposited in these accounts will get interest at the rate available on the post office savings account till 30 September 2024. After October 1, no interest will be paid on the amount deposited in these accounts.
