Major Personal Finance Changes Effective from October 2024: Aadhaar, Small Savings Schemes & More

From October 1, 2024, significant updates in personal finance will come into effect, impacting everything from Aadhaar card usage to small savings schemes. Staying informed about these changes is crucial for managing finances efficiently.

1. Aadhaar Card Changes:
From October 1, 2024, Aadhaar enrolment ID will no longer be accepted for applying for a Permanent Account Number (PAN) or filing income tax returns. As per Section 139AA of the Income Tax Act, individuals eligible to obtain an Aadhaar number must quote it in their PAN application form and income tax returns, effective from July 1, 2017.

2. Bonus Shares Trading:
The Securities and Exchange Board of India (SEBI) has introduced a new system for bonus shares trading. Effective from October 1, 2024, bonus shares will follow a T+2 settlement cycle, reducing the waiting period between the record date and when they can be traded.

3. Small Savings Schemes Regularisation:
The Ministry of Finance’s Department of Economic Affairs has issued guidelines for regularising irregular National Small Savings (NSS) accounts. Accounts such as Public Provident Fund (PPF) opened in minors’ names, multiple PPF accounts, PPF extensions by NRIs, and Sukanya Samriddhi Accounts (SSA) opened by grandparents will need to be submitted for regularisation.

4. Increased Securities Transaction Tax (STT):
From October 1, 2024, the Securities Transaction Tax (STT) on futures and options (F&O) will increase. The STT on option sales will rise from 0.0625% to 0.1% of the premium. For instance, selling an option with a ₹100 premium will now incur a ₹0.10 STT, up from ₹0.0625.

5. Indian Railways Special Drive:
In anticipation of higher passenger volumes, Indian Railways will launch a special crackdown on ticketless travellers starting October 1, 2024. This initiative aims to curb unauthorized travel and improve compliance with ticketing rules.

6. Post Office Account Interest Changes:
From October 1, 2024, changes in interest rates will apply to small savings accounts under the National Small Savings (NSS) schemes, affecting account holders’ earnings.

7. Direct Tax Vivad Se Vishwas Scheme 2024:
The Direct Tax Vivad Se Vishwas Scheme 2024, effective from October 1, 2024, seeks to resolve pending income tax disputes. It allows taxpayers to settle appeals and petitions pending in courts and appellate bodies as of July 22, 2024.