The Fact Explorer

  TDS Rules: What's Changed? The Budget 2024 introduces significant updates to TDS (Tax Deducted at Source) provisions, effective October 1, 2024. These changes are designed to streamline tax administration and adjust rates across various categories. Below is a detailed breakdown of the updates, including comparisons and examples: 1. Interest on Government Securities Update:  Interest on Floating Rate Savings Bonds, 2020 (Taxable), and other securities will now be subject to TDS under Section 194A if it exceeds ₹10,000. Effective Date:  October 1, 2024 Comparison: Old Rule:  Many government securities were exempt from TDS. New Rule:  TDS is applicable if interest exceeds ₹10,000. Example:  Earning ₹15,000 in interest from floating rate savings bonds will now have a TDS of ₹500 (10% of ₹5,000). 2. Dividend Taxation Update:  Section 194 has been amended to cover more types of dividend income received by an individual or entity, like dividends on stocks o...

  What is the Employee Provident Fund? The Employee Provident Fund (EPF) is a scheme that helps people save up a sufficient corpus for retirement. The plan was introduced with the Employees’ Provident Funds Act in 1952 and is today managed by the  Employees’ Provident Fund Organisation (EPFO) . In this scheme, an employee has to contribute 12% of their basic income towards the fund every month. The employer matches this amount with an equal contribution. When you retire, you receive the total amount (personal as well as the employer’s contribution) as a lump sum along with interest. The EPF is regarded as a low-risk investment as the Government of India manages it and assures a fixed rate of return. Companies with a minimum of 20 employees must maintain EPF accounts for their employees. Some companies with fewer than 20 employees also adopt the EPF scheme. We shall discuss this in detail later on. Also, the provision of an EPF account is compulsory for employees with a salary ...

  What is the IGNOU Credit Transfer Scheme? IGNOU Credit Transfer serves as an advantageous opportunity for students who have completed a segment of their degree program at IGNOU and intend to finish the remaining portion at a different institution. Motivations for this choice can range from relocating to a new city, seeking enhanced opportunities, to simply desiring to explore a different course of study. The IGNOU Credit Transfer mechanism empowers students to conserve both time and financial resources, as it exempts them from the need to reundertake courses they have already completed. Furthermore, it facilitates the seamless continuation of their educational journey, eliminating disruptions typically associated with the transfer process. But what exactly is IGNOU Credit Transfer? It is a structured process enabling students who have fulfilled course requirements at IGNOU or another recognized institution to transfer their earned credits to another program. Essentially, this mea...