Prerana Toshniwal, Pune
The Ministry of Finance has issued new rules for formalizing irregular accounts in different small savings schemes. These guidelines apply to various accounts such as NSS-87, PPF accounts for minors, and Sukanya Samriddhi schemes. All postal offices and financial institutions must adhere to these protocols to guarantee compliance and productivity. The official communication regarding this update was issued in the Department of Economic Affairs circular on August 21, 2024.
The new rules are as follows:
- Aadhar Card: From October 1, 2024, individuals can skip using their Aadhaar enrolment ID when applying for a Permanent Account Number (PAN) or filing income tax returns. As per the Budget memorandum, Section 139AA of the Income Tax Act requires individuals eligible for an Aadhaar number to provide it in the PAN application form and income tax returns, starting from July 1, 2017.
- Bonus shares: SEBI has introduced a new system to simplify the trading of bonus shares in India. Starting October 1, 2024, bonus shares will now be tradable within two days after the record date, reducing the waiting period before they can be bought and sold.
- Small Savings Scheme: Guidelines for reopening incorrectly established accounts in National Small Savings (NSS) programs through Post Offices have been made available by the Ministry of Finance’s Department of Economic Affairs.. Accounts that are not in compliance will need to be sent to the Ministry for correction, with clear instructions provided for six main categories: irregular NSS accounts, PPF accounts opened under minors, multiple PPF accounts, PPF account extensions by NRIs, and the correction of Sukanya Samriddhi Accounts opened by grandparents instead of legal guardians.
- Securities Transaction Tax (STT): Starting October 1, 2024, there will be an increase in the Securities Transaction Tax for futures and options (F&O) trading.These changes are part of the Union Budget for 2024. These aim at controlling speculative trading in the growing derivatives market. The previous rate of 0.0625% for the Securities Transaction Tax (STT) on option sales would be increased to 0.1% of the premium. The STT would go from ₹ 0.0625 to ₹ 0.10 if one was to sell an option with a ₹ 100 premium.
- Indian Railways Special Drive: Indian Railways will initiate a special campaign targeting passengers traveling without tickets, due to the anticipated increase in passenger numbers during peak weeks. The Ministry of Railways is implementing this program to reduce unauthorized travel and strengthen ticket inspection procedures.
- Post Office accounts interest change: Starting from October 1, 2024, significant modifications will affect small savings accounts in the National Small Savings (NSS) schemes offered by the Post Office. Customers need to be mindful of these changes, as they could impact the amount of interest they receive on their savings.
- Direct Tax Vivad se Vishwas Scheme 2024: The CBDT has declared that the Direct Tax Vivad Se Vishwas Scheme 2024 will be implemented starting on October 1, 2024. This plan seeks to decrease income tax disputes by enabling taxpayers to resolve current disagreements, such as appeals and petitions awaiting resolution in the Supreme Court, high courts, and other appellate bodies, by July 22, 2024.