October 2024: Know about bank holidays and other important changes directly impacting general public

As of today, October 1, 2024, several new rules have come into effect across various sectors, directly impacting the general public. These changes, ranging from taxes and banking regulations to mobile user benefits, have been introduced with the intent of streamlining systems and ensuring greater transparency. Here’s a detailed look at the key changes:

1. LPG Cylinder Prices Increased

The prices of LPG cylinders have undergone a revision by state-run oil companies. The cost of 19 kg commercial gas cylinders has been increased, while the prices of 14 kg domestic cylinders remain unchanged.

2. TRAI’s New Regulations for Mobile Users

The Telecom Regulatory Authority of India (TRAI) has rolled out new regulations aimed at benefiting mobile users. The key highlights include:

• To curb spam calls, telecom operators like Jio, Airtel, Vodafone, and BSNL have been directed to compile lists of spam callers and provide a secure URL or OTP link, reducing online fraud risks. These rules, initially set to begin in September, were delayed by a month and take effect today.
• Consumers may face some disruption in receiving messages from banking and other services that provide updates via SMS as Trai’s new mandate on whitelisting URLs comes into effect from October 1.

While Trai officials acknowledged that there might be some minor disruptions, they emphasized that sufficient time and clear guidelines had been provided to all stakeholders to prepare for the transition.

3. Bank Holidays in October

In October, banks across various states in India will remain closed for 15 days due to many state-specific festivals.

The bank holidays in October 2024 include closures for the General Elections to the State Legislative Assembly 2024, Mahatma Gandhi Jayanti/Mahalaya Amavasye, Navratra Sthapna, Durga Puja/Dussehra (Maha Saptami), Dusshera (Mahashtami/Mahanavami)/Ayudha Pooja/Durga Puja/Durga Ashtami, Dasara/Dussehra (Mahanavami/Vijayadashmi)/Durga Puja (Dasain), Durga Puja (Dasain), Lakshmi Puja, Maharshi Valmiki Jayanti/Kati Bihu, Accession Day, and Diwali (Deepavali)/Kali Puja/Sardar Vallabhbhai Patel’s Birthday/Naraka Chaturdashi.

The specific dates and states affected by these bank holidays are as follows:

• General Elections to the State Legislative Assembly 2024- October 1, 2024- Banks are closed in Jammu.
• Mahatma Gandhi Jayanti/Mahalaya Amavasye- October 2- Banks are closed across India.
• Navratra Sthapna- October 3- Banks are closed in Rajasthan.
• Durga Puja/Dussehra (Maha Saptami)—October10- Banks are closed in Tripura, Assam, Nagaland, Bengal.
• Dussehra- October 12- Banks are closed all states as is the second Saturday of the month.
• Durga Puja (Dasain)- October 14- Banks are closed in Sikkim.
• Lakshmi Puja- October 16- Banks are closed in Tripura and Bengal.
• Maharshi Valmiki Jayanti/Kati Bihu- October 17-Banks are closed in Karnataka, Assam, Himachal Pradesh.
• Accession Day- October 26- Banks are closed in Jammu and Srinagar
• Diwali (Deepavali)/Kali Puja/Sardar Vallabhbhai Patel’s Birthday/Naraka Chaturdashi- October 31 – Banks are closed in most of the states except Tripura, Maharashtra, Uttarakhand, Sikkim, Manipur, Meghalaya.

4. Sukanya Samriddhi Yojana Account Closures

New rules regarding the Sukanya Samriddhi Yojana have been implemented. Accounts opened by anyone other than the legal or biological guardian of the girl child will be closed. The scheme now permits only legal or biological guardians to manage the accounts, and any extra accounts opened beyond the permitted two will be shut down.

5. Securities Transaction Tax (STT)

The Securities Transaction Tax on Futures and Options (F&O) trading has been increased, with a 0.02% hike for futures and a 0.1% hike for options. Additionally, share buybacks will now be taxed based on the taxable income of beneficiaries, effective from today. This change aims to curtail speculation in the derivatives market.

6. PAN-Aadhaar Linkage Rule Changes

From today, it will no longer be permissible to use the Aadhaar Enrollment ID in place of an Aadhaar number in PAN applications or income tax returns. This move is intended to minimize the misuse and duplication of PAN cards.

7. Tax on Share Buybacks

In line with changes to dividend taxation, shareholders participating in share buybacks will now face taxation from October 1. The acquisition cost of shares will now consider capital gains or losses, leading to a higher tax burden for shareholders opting for buybacks.

8. Tax on Floating Rate Bonds

Effective today, a 10% Tax Deducted at Source (TDS) will be levied on certain central and state government bonds, including floating rate bonds. However, no TDS will be applied if the annual income from these bonds is less than ₹10,000.

9. Changes in TDS Rates

TDS rates on several sections have been reduced:

• Section 194 DA: Life insurance policy payments.
• Section 194 G: Commission on sale of lottery tickets.
• Section 194 H: Commission or brokerage.
• Section 194-IB: Rent payments by individuals or HUFs.
• Section 194 M: Payments made by certain individuals or HUFs.

Additionally, TDS on e-commerce transactions has been reduced to 0.1%.

10. Direct Tax Dispute Se Vishwas Scheme

The Central Board of Direct Taxes (CBDT) has launched the “Direct Tax Dispute Se Vishwas” scheme, which aims to resolve pending income tax disputes. Taxpayers opting to settle between October 1 and December 31, 2024, must pay the disputed tax or 25% of the penalty, interest, or fees. After December 31, the settlement amount increases, and in cases where the tax department has filed an appeal, the settlement will be reduced by 50%.

These rule changes, effective today, are designed to bring more transparency and ease to the public’s daily financial and administrative dealings.

Readers are advised to reconfirm the information from primary sources before taking any decision based on the information provided above.