Income Tax Slabs 2024-25 Budget 2024 Highlights & Announcements: Standard deduction hiked, tax slabs changed - taxpayers will save Rs 17,500! Capital gains tax regime changed

Income Tax Budget 2024 Live: How much tax will you save with new NPS contribution benefit under new regime?

The deduction under Section 80CCD(2) is set to be raised from 10% to 14% of the basic salary. This section permits you to contribute up to 10% of your basic pay to NPS tax-free. Previously, only government employees were eligible for the 14% deduction, but now this benefit has been extended to the private sector as well.

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Income Tax Budget 2024: Wait for tax refund may irk you more

Currently, if you file an I-T return claiming a refund, and assessment proceedings are pending for any earlier year, the I-T officer can withhold the refund till the completion of earlier year's assessment if they think that the 'interest of the revenue will be adversely affected'. But, the officer has to obtain the commissioner's nod.

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Income Tax Budget 2024: How TCS is set to become less TDS for salaried class

At present, a salaried employee may declare income, such as bank interest and rent, to their employer, who factors this and, accordingly, deducts a higher tax against the monthly salary. The employee then does not have to worry about paying advance tax as adequate tax has already been withheld.

A similar norm comes into effect from Oct 1. The salaried employee will be able to declare TCS and the employer will factor this in, resulting in a lower TDS against salary income. Thus, it will avoid cash-flow issues. Further, if a refund was due, owing to TCS, the individual taxpayer will no longer have to wait for it as it is adjusted against TDS on salary income.

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Income Tax Budget 2024: Study in India & get Rs 10 lakh cheap higher education loan

The Union Budget, presented by FM Nirmala Sitharaman, revealed a mixed bag of allocations for the education sector, with some areas receiving substantial increases while others faced cuts. The minister announced a significant increase for PM Poshan scheme and govt support for loans up to Rs 10 lakh for higher education in domestic institutions.

Student aid for higher education saw an enhancement of Rs 493 crore, up from Rs 1,320 crore to Rs 1,813.2 crore. Additionally, funding for research, innovation and apprenticeships was prioritised, with an increase of Rs 162 crore for research (from Rs 193.4 crore to Rs 355 crore) and a boost in National Apprenticeship Training Scheme from Rs 460 crore to Rs 600 crore. On the flip side, the budget for education saw a reduction of Rs 9,090.4 crore from the revised estimate of 2023-24, bringing the allocation down to Rs 1,20,627.8 crore for 2024-25. This 6.8% increase from the previous year's Budget estimate still reflects a reduction when considering the revised figures.

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Whether this Budget leaves you richer or poorer depends on your income level, the tax regime you choose, and your investments. For individuals earning Rs 10 lakh or more annually, the new tax slab changes and increased standard deduction result in a net annual gain of Rs 17,500. Additionally, the reduction in tax decreases the health and education cess by Rs 700 (4% of Rs 17,500), bringing total savings to Rs 18,200.

Income Tax Budge 2024 Live: New Tax Regime 2023 vs 2024 After Budget: How Much Income Tax Will Salaried Taxpayers Save?

Which income tax regime should you choose after Budget 2024 – the old regime or the revised new tax regime? If you are already filing returns under the existing new regime, how much benefit will you get from the revised version? Finance Minister Nirmala Sitharaman announced that the standard deduction hike and new income tax slabs under the revised new regime will save salaried taxpayers Rs 17,500. To understand your potential savings at different salary levels, we examine 10 tables from EY detailing the new income tax changes and their impact on taxpayers at various income levels.

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Income Tax Budget 2024 Live: Amendment to definition of Specified Mutual Fund under section 50AA

The Finance Act, 2023 had introduced special taxation regime of deemed short term capital gains taxation for Market Linked Debentures and Specified Mutual Funds by way of introduction of section 50AA of the Act. The gains in such cases were to be taxed as Short-term Capital Gain irrespective of period of holding. The requirement of investment of not more than 35% in equity shares has also impacted other funds which are not debt-oriented funds, but invest below 35% in equity shares. Such funds which are adversely impacted include Exchange Traded Funds (ETFs), Gold Mutual Funds and Gold ETFs. In the case of Fund-of-Funds (FoFs) as well, wherein the underlying fund further invests in other instruments, there is ambiguity as to whether they will be considered Specified Mutual Funds as defined in section 50AA. Thus, a need to re-define the term “Specified Mutual Funds” for the purposes of Section 50AA, to provide clarity regarding the proportion of investment being made in terms of debt and money market instruments, and also to clarify the investment requirements in the case of Fund-of-Funds (FoFs) had arisen. Representations from multiple stakeholders were received seeking clarity and revision. It is thus proposed to amend the definition of “Specified Mutual Fund” under clause (ii) of Explanation of section 50AA to provide that a specified mutual fund shall mean a mutual fund:

(a) a Mutual Fund by whatever name called, which invests more than sixty five per cent of its total proceeds in debt and money market instruments; or
(b) a fund which invests sixty five per cent or more of its total proceeds in units of a fund referred to in sub-clause (a).

The above amendment under clause (ii) of Explanation of section 50AA is proposed to be brought into effect from 1st day of April, 2026 and shall be applicable from AY 2026-27 onwards.

Income Tax Budget 2024 Live: LTCG changes alert!

The rate of long-term capital gains under provisions of various sections of the Act is proposed to be 12.5% in respect of all category of assets. This rate earlier was 10% for STT paid listed equity shares, units of equity-oriented fund and business trust under section 112A and for other assets it was 20% with indexation under section 112. However, an exemption of gains upto 1.25 lakh (aggregate) is proposed for long-term capital gains under section 112A on STT paid equity shares, units of equity oriented fund and business trust, thus, increasing the previously available exemption which was upto 1 lakh of income from long term capital gains on such assets. For bonds and debentures, rate for taxation of long-term capital gains was 20% without indexation. For listed bonds and debentures, the rate shall be reduced to 12.5%. Unlisted debentures and unlisted bonds are of the nature of debt instruments and therefore any capital gains on them should be taxed at applicable rate, whether short-term or long-term. It is proposed accordingly.

Income Tax Budget 2024 Live: What’s happened on short term capital gains tax front?

The rate for short-term capital gain under provisions of section 111A of the Act on STT paid equity shares, units of equity oriented mutual fund and unit of a business trust is proposed to be increased to 20% from the present rate of 15% as the present rate is too low and the benefit from such low rate is flowing largely to high net worth individuals. Other short-term capital gains shall continue to be taxed at applicable rate.

Income Tax Budget 2024 Live: Section 194F - TDS on payments on repurchase of units by mutual fund or UTI

It is proposed to omit section 194F relating to TDS on payments on repurchase of units by Mutual Fund or UTI which attracts a TDS rate of 20%. The amendment will take effect from 1st day of October 2024.

Income Tax Budget 2024 Live: Increase in Standard Deduction and deduction from family pension for taxpayers in tax regime

The existing provision of clause (ia) of section 16 of the Act provides that a deduction of fifty thousand rupees or the amount of the salary, whichever is less, shall be made before computing the income under the head “Salaries”

Further, the existing provision of clause (iia) of section 57 of the Act provides that in the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent of such income or fifteen thousand rupees, whichever is less, shall be made before computing the income chargeable under the head "Income from other sources".

With the aim of encouraging and incentivizing taxpayers (specially the salaried taxpayers) to shift to the new tax regime, it is proposed to insert a proviso after clause (ia) of section 16 to provide that in a case where income-tax is computed under clause (ii) of sub-section (1A) of section 115BAC of the Act, the provisions of this clause shall have effect as if for the words “fifty thousand rupees”, the words “seventy five thousand rupees” had been substituted

It is also proposed to insert a proviso in clause (iia) of section 57 to provide that in a case where income-tax is computed under clause (ii) of sub-section (1A) of section 115BAC of the Act, the provisions of this clause shall have effect as if for the words “fifteen thousand rupees”, the words “twenty five thousand rupees” had been substituted.

These amendments will take effect from the 1st day of April, 2025, and will accordingly apply to assessment year 2025-26 and subsequent assessment years.

Income Tax Budget 2024 Live: What does Budget 2024 say on NPS benefits?

Increase in amount allowed as deduction to non-government employers and their employees for employer contribution to a Pension Scheme referred in section 80CCD

Section 36 of the Act pertains to other deductions allowed while computing the income under the head ‘Profits and gains of business or profession’. Clause (iva) of sub-section (1) of said section states that any sum paid by the assessee as an employer by way of contribution towards a pension scheme, as referred to in section 80CCD of the Act, on account of an employee, to the extent it does not exceed ten per cent of the salary of the employee in the previous year, shall be allowed as a deduction to the employer.

It is proposed to amend clause (iva) of sub-section (1) of section 36 of the Act, to increase the amount of employer contribution allowed as deduction to the employer, from the extent of 10% to the extent of 14% of the salary of the employee in the previous year.

Section 80CCD deals with deduction in respect of contribution to pension scheme of Central Government. Sub-section (2) of section 80CCD states that any contribution by the Central Government or State Government or any other employer to the account of an employee referred to in sub-section (1), shall be allowed as a deduction as does not exceed ––

(a) 14% (where such contribution is made by the Central Government or State Government); and
(b) 10% (where such contribution is made by any other employer) of the employees’ salary in previous year.

It is proposed to amend sub-section (2) of section 80CCD of the Act, to provide that where such contribution has been made by any other employer (not being Central Government or State Government), the employee shall be allowed as a deduction an amount not exceeding 14% of the employee’s salary. This is being increased only in the case where the employee’s salary is chargeable to tax under sub-section (1A) of section 115BAC of the Act.

The amendments will take from the 1st day of April, 2025 and will accordingly apply from assessment year 2025-2026 onwards

Income Tax Budget 2024 Live: Reporting of income from letting out of house property under ‘Income from House Property’

Section 28 of the Act specifies kinds of income that shall be chargeable to income-tax under the head ‘Profits and gains of business or profession’.

It has been observed that some taxpayers are reporting their rental income generated by letting out of the house property, under the head ‘Profits and gains of
business or profession’ in place of the head ‘Income from house property’. Accordingly, they are reducing their tax liability substantially by showing house property income under the wrong head of income.

In view of the same, it is proposed to amend the section 28 of the Act so as to clarify that any income from letting out of a residential house or a part of the house by the owner shall not be chargeable under the head “Profits and gains of business or profession” and shall be chargeable under the head “Income from house property”.

This amendment will take effect from the 1st day of April, 2025 and will, accordingly, apply in relation to assessment year 2025-26 and subsequent assessment years.

Income Tax Budget 2024 Live: Taxpayers increasingly switching to new tax regime

“Introduction of simplified tax regimes without exemptions and deductions for corporate tax and personal income tax. This has been appreciated by tax payers. 58 per cent of corporate tax came from the simplified tax regime in financial year 2022-23. Similarly, as per data available till now for the last fiscal, more than two-thirds have availed the new personal income tax regime,” said FM Sitharaman.

From income tax slab changes to a hike in standard deduction and several changes in the capital gains tax regime, here is a look at the key takeaways from the Union Budget 2024 as listed by EY.

Income Tax Budget 2024 Live: ‘Tax changes will benefit a large number of taxpayers’

“The Union Budget 2024 brings substantial changes to personal finance that will benefit a large number of taxpayers. The increase in the standard deduction from Rs 50,000 to Rs 75,000 and the revision of the tax slab limit for the 5% tax rate from Rs 5 lakh to Rs 7 lakh will significantly enhance disposable income. These changes will provide much-needed financial relief to the middle class and boost overall consumption.

Furthermore, the proposal to increase the deduction of employer expenditure towards NPS from 10% to 14% of the employee’s salary will improve social security benefits for the workforce. The revamp of the capital gains tax regime will impact investment decisions and financial planning, ensuring a more balanced and fair approach to taxation. These measures collectively contribute to a more robust and financially secure environment for individuals and families across India,” says Rohan Bhargava, Co-Founder of CashKaro

Income Tax Budget 2024 Live: Budget 2024 has good news for NPS tax savings

The contribution limit for employers in the private sector has been raised from 10% to 14% of the employee's basic salary. This new limit applies to both private and public sector employees, exclusively under the new tax regime. Shalini Jain, Tax Partner, People Advisory Services at EY India, emphasises that this increase will enable employees opting for the new tax regime to save more taxes and build a larger pension pool for social security.

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Income Tax Budget 2024 Live:What is the latest standard deduction limit post Budget 2024; check hike under new tax regime

The hike in standard deduction will benefit salaried individuals and pensioners by reducing their taxable income, thereby lowering their tax liability. The standard deduction is a fixed amount that taxpayers can deduct from their gross income without needing to provide detailed expense proofs.

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Income Tax Budget 2024: What are the takeaways on long term capital gains tax?

“With the marginal increase in LTCG from 10% to 12.5%, long-term investors might be paying slightly higher taxes. However, with the exemption limit raised to Rs 1.25 lakh, small investors will see modest benefits. The increase of STCG from 15% to 20% will impact short-term equity investors. Although the tax rates are marginally increased, equity mutual funds remain an attractive investment opportunity compared to other asset classes. Therefore, we do not anticipate that the change in tax rates will significantly affect the flows towards equity mutual funds.

The withdrawal of the 20% TDS rate on mutual fund unit repurchase marks a step towards easing the tax burden for investors.

This aligns with the overall budget's focus on inclusive growth, employment generation, and infrastructure development, aimed at creating ample opportunities and fostering a resilient economy,” says Feroze Azeez, Deputy CEO Anand Rathi Wealth Limited.

Income Tax Budget 2024 Live: What’s the outlook on gold prices?

"In the Budget, it was announced that Basic Custom Duty and AIDC on gold have been reduced, bringing the total from 15 percent to 6 percent. As a result, the price of gold reacted lower in MCX by more than Rs 3800 to Rs 68,900. The broad view remains volatile and weak as Comex gold stays below $2415. The interest rate cut in the US will be keenly anticipated, now that Indian gold has become discounted, presenting a more favorable long-term buying opportunity for gold in Indian markets. Price range for Gold shifts to 67500-69500 range,” says Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Income Tax Budget 2024 Live: Were any changes introduced in the old tax regime?

Finance Minister Nirmala Sitharaman did not announce any changes to the old income tax regime. This is in line with what most personal tax experts were expecting, since last year the new tax regime was made the default tax regime. The Modi government has signalled a clear intent to move towards a tax regime with fewer or negligible exemptions. Interestingly, in a pre-Budget 2024 survey done by Times of India Online, most tax experts were of the view that the government will eventually phase out the old income tax regime.

Income Tax Budget 2024: Security Transactions Tax on futures and options

“I have a couple of proposals for deepening the tax base. First, Security Transactions Tax on futures and options of securities is proposed to be increased to 0.02 per cent and 0.1 per cent respectively. Second, for reasons of equity, I propose to tax income received on buy back of shares in the hands of the recipient,” FM Sitharaman said.

Income Tax Budget 2024: What else do you need to know

Other major proposals in the Finance Bill relate to:

• Withdrawal of equalization levy of 2 per cent;
• Expansion of tax benefits to certain funds and entities in IFSCs; and
• immunity from penalty and prosecution to benamidar on full and true disclosure so as to improve conviction under the Benami Transactions (Prohibition) Act, 1988.

Income Tax Budget 2024: How will you save Rs 17,500?

At various income levels, the benefits will vary. The base income tax benefit of Rs 17,500 announced by FM Sitharaman does not include the cess. It also doesn't include surcharge at higher income levels. As per the analysis by EY, you will now have to pay zero tax of income up to Rs 7.75 lakh. For income up to Rs 10 lakh, you will annually save Rs 10,000 (without cess). If one were to include cess then the benefit will go up.

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Income Tax Budget Live: Further simplification expected with review of Income tax law

“Aiming for simplicity and job creation, the honorable FM announced schemes for benefit for new employees as well as for individuals choosing new tax regime - increased standard deductions, revised income slabs and tax rates. There are significant changes in tax rates and holding periods for LTCG, STCG, and STT on Futures & Options which may have an impact on the capital markets. Further simplification expected with review of Income tax law in next six months and easing of litigation procedures,” says Parizad Sirwalla, Partner and Head, Global Mobility Services, Tax, KPMG in India.

Budget 2024 Live: Employment Linked Incentive

“Our government will implement following 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers.

Scheme A will provide one-month wage to all persons newly entering the workforce in all formal sectors. The direct benefit transfer of one-month salary in 3 instalments to first-time employees, as registered in the EPFO, will be up to Rs 15,000. The eligibility limit will be a salary of Rs 1 lakh per month. The scheme is expected to benefit 210 lakh youth.

Scheme B will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees. An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment. The scheme is expected to benefit 30 lakh youth entering employment, and their employers.

Scheme C is an employer-focussed scheme will cover additional employment in all sectors. All additional employment within a salary of Rs 1 lakh per month will be counted. The government will reimburse to employers up to Rs 3,000 per month for 2 years towards their EPFO contribution for each additional employee. The scheme is expected to incentivize additional employment of 50 lakh persons,” announced FM Nirmala Sitharaman.

Income Tax Budget 2024: Easier for taxpayers to correctly capture capital gains tax

“The changes in capital gain scheme is in line with the government’s vision of simplifying tax regime. With only 2 holding periods - 12 months for listed securities and 24 months for all other assets and long term tax rate of 12.5% for all assets, it has now become easy for taxpayer to correctly capture cap gain tax.

However, removing the indexation benefit will negatively impact the taxpayers, especially for house property owners . Since house properties are usually held for a long time, cost indexation ( due to cost of inflation) plays a pivotal role in reducing the taxable capital gain. With no indexation, even if the reduced tax rate from 20 to 12.5 may still increase their tax liability,” says Tanu Gupta, Partner Mainstay Tax Advisors LLP.

Income Tax Budget 2024: Share buyback exemption withdrawn

Share buyback exemption withdrawn - will be treated as deemed dividend going forward (no Capital Gains treatment). Cost of such shares to be considered as Capital Loss and allowed to be set off against other Capital Gains/carried forward.

Income Tax Budget 2024: What are the welcome moves?

“Move to revamp Income Tax Act, allocating more officers to dispose of appeals, reducing period of reopening assessments and raising the thresholds to file appeals are some of the good moves which will help to rationalise and reduce litigation,” says Kuldip Kumar, Partner, Mainstay Tax Advisors.

Income Tax Budget 2024: Credit for tax collected at source

Credit for tax collected at source (TCS) will be available against the tax withheld on the salary income by the employer, which will ease the cash flow issue for the employee and avoid potential refund claim at the time of filing return of income. This is effective from 1st October 2024.

Income Tax Budget 2024: Measures for litigation and appeals

“While our concerted efforts to reduce pendency of appeals at various appellate fora are beginning to show good results, it will continue to engage our highest attention.

To dispose of the backlog of first appeals, I plan to deploy more officers to hear and decide such appeals, especially those with large tax effect.

For resolution of certain income tax disputes pending in appeal, I am also proposing Vivad Se Vishwas Scheme, 2024.

Further, I propose to increase monetary limits for filing appeals related to direct taxes, excise and service tax in the Tax Tribunals, High Courts and Supreme Court to Rs 60 lakh, Rs 2 crore and Rs 5 crore respectively.

With a view to reduce litigation and provide certainty in international taxation, we will expand the scope of safe harbour rules and make them more attractive. We will also streamline the transfer pricing assessment procedure,” said FM Nirmala Sitharaman.

Income Tax Budget 2024: Simplifying income tax regimes

“We will continue our efforts to simplify taxes, improve tax payer services, provide tax certainty and reduce litigation while enhancing revenues for funding the development and welfare schemes of the government.

It has been our endeavour to simplify taxation. We have taken a number of measures in the last few years including introduction of simplified tax regimes without exemptions and deductions for corporate tax and personal income tax. This has been appreciated by tax payers. 58 per cent of corporate tax came from the simplified tax regime in financial year 2022-23. Similarly, as per data available till now for the last fiscal, more than twothirds have availed the new personal income tax regime,” said FM Nirmala Sitharaman.

Income Tax Budget 2024: Rationalisation of TDS rates

Rationalisation of tax deducted at source (TDS) rates: It is proposed to bring down TDS rates from 5 per cent to 2 per cent in certain sections and omit section 194F where TDS rate is 20 per cent, as given below:

Income Tax Budget 2024: What are the changes for widening tax base?

• Buy-back of shares: It is proposed that the income from buy-back of shares by companies be chargeable in the hands of recipient investor as dividend, instead of the current regime of additional income-tax in the hands of the company. Further, the cost of such shares shall be treated as a capital loss to the investor.
• Securities transaction tax (STT) rates: It is proposed to increase the rates of STT on sale of an option in securities from 0.0625 per cent to 0.1 per cent of the option premium, and on sale of a futures in securities from 0.0125 per cent to 0.02 per cent of the price at which such futures are traded.
• Income from letting out of house property: It is proposed that income from letting out of a house or part of the house by the owner, shall not be charged under the head ‘profits and gains of business or profession’ and will be chargeable to tax under the head ‘income from house property’ only.
• Transfer of capital asset: It is proposed to provide that the transfer of a capital asset, under a gift or will or an irrevocable trust, by an entity other than an individual or a Hindu undivided family (HUF) only, shall be regarded as transfer for the purpose of calculation of capital gain.
• TDS on payment to a partner: It is proposed that payments made by firm to its partner in the nature of salary, remuneration, commission, bonus and interest, etc shall be subject to TDS at the rate of 10 per cent for aggregate amounts more than ` 20,000 in a financial year.
• TCS on notified luxury goods: To enable TCS on luxury goods, it is proposed to levy TCS of 1 per cent on notified goods of value exceeding ten lakh rupees.
• TDS on sale of immovable property: It is proposed to clarify that where there is more than one transferor or transferee in respect of an immovable property, then such consideration for transfer of the immovable property shall be the aggregate of the amounts paid or payable by all the transferees to the transferor or all the transferors for transfer of such immovable property.
• TDS on Floating Rate Savings (Taxable) Bonds (FRSB) 2020: TDS is proposed on interest exceeding ten thousand rupees on Floating Rate Savings (Taxable) Bonds (FRSB) 2020 or any other notified security of the Central or State Governments.
• Inadmissibility of non-business expenditure by life insurance companies: It is proposed to provide that any expenditure which is not admissible under the provisions of section 37 in computing the profits and gains of a business shall be included to the profits and gains of the life insurance business.
• Inclusion of taxes withheld outside India for purposes of calculating total income: It is proposed to provide that income tax paid outside India by way of deduction is deemed to be income received for the purpose of computing the income of the assessee.
• Excluding income mentioned in section 194J from applicability of section 194C: It is proposed to explicitly state that any sum referred to in sub-section (1) of section 194J (fees for professional or technical services) does not constitute “work” for the purposes of TDS under section 194C (payments to contractors).
• Claim of settlement amounts as business expenditure: It is proposed to disallow expenses incurred as settlement fees for any contravention of law, as may be notified by the Central Government.
• Definition of Fair Market Value (FMV): It is proposed to provide for a method of calculation of fair market value on 31.01.18 under section 55(2) (ac) in the case of sale of unlisted equity shares in an offer for sale in an initial public offer.

Income Tax Budget 2024 LIVE Updates: Change in categorization of LTCG for unlisted assets

“Other than listed financial or non-financial assets will become long term asset if it is held for more than 24 months earlier the limit was 24 months for unlisted financial assets and immovable property and 36 months for other capital asset. This will have only two class of asset, one listed financial asset - 12 months and others 24 months,” says Gopal Bohra, Partner, N.A. Shah Associates.

Income Tax Budget 2024 LIVE Updates: Who should now opt for new income tax regime?

“If the gross income is more than Rs 15.75 lakh, then individual is better off taking new regime only if the deductions and exemptions are less than Rs 4,33,333 (excluding standard deduction),” says Surabhi Marwah, Tax Partner, EY India.

Income Tax Budget 2024 LIVE Updates: Proposals for deepening tax base

“First, Security Transactions Tax on futures and options of securities is proposed to be increased to 0.02 per cent and 0.1 per cent respectively. Second, for reasons of equity, I propose to tax income received on buy back of shares in the hands of the recipient,” said FM Nirmala Sitharaman.

Income Tax Budget 2024 LIVE Updates: What do the tax changes mean?

“Major changes in personal taxes with an intention to benefit the middle class and pensioners announced by the FM. Under the new tax regime, the personal income tax standard deduction will be increased from Rs 50,000 to Rs 75,000, and the deduction for family pensions will be raised from Rs 15,000 to Rs 25,000. Further, the changes in new tax regime slabs announced is expected to result in tax savings of Rs 17,500 for individuals,” says Surabhi Marwah, Tax Partner, EY India.

Income Tax Budget 2024 LIVE Updates: Taxpayers to save Rs 17,500!

“Coming to Personal Income Tax Rates, I have two announcements to make for those opting for the new tax regime. First, the standard deduction for salaried employees is proposed to be increased from Rs 50,000/- to Rs 75,000/-. Similarly, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000/- to Rs 25,000/-. This will provide relief to about four crore salaried individuals and pensioners.

Second, in the new tax regime, the tax rate structure is proposed to be revised, as follows:

• 0-3 lakh rupees - NIL tax
• 3-7 lakh rupees - 5% tax
• 7-10 lakh rupees - 10% tax
• 10-12 lakh rupees - 15% tax
• 12-15 lakh rupees - 20% tax
• Above 15 lakh rupees - 30% tax

As a result of these changes, a salaried employee in the new tax regime stands to save up to Rs 17,500/- in income tax,” said FM Nirmala Sitharaman.

Income Tax Budget 2024 LIVE Updates: What are the benefits for Indian professionals working in MNCs?

Indian professionals working in multinationals get ESOPs and invest in social security schemes and other movable assets abroad. Non-reporting of such small foreign assets has penal consequences under the Black Money Act. Such non-reporting of movable assets up to Rs 20 lakh is proposed to be de-penalised.

Income Tax Budget 2024 LIVE Updates: What are the new NPS benefits?

To improve social security benefits, deduction of expenditure by employers towards NPS is proposed to be increased from 10 to 14 per cent of the employee’s salary. Similarly, deduction of this expenditure up to 14 per cent of salary from the income of employees in private sector, public sector banks and undertakings, opting for the new tax regime, is proposed to be provided.

Income Tax Budget Live 2024: Simplification and Rationalisation of Capital Gains

"Short term gains on certain financial assets shall henceforth attract a tax rate of 20 per cent, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate.

Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes,
I propose to increase the limit of exemption of capital gains on certain financial assets to ₹ 1.25 lakh per year.

Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term.

Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates," said FM Sitharaman.

Income Tax Budget 2024 Live: What are the changes in capital gains tax regime?

The Simplification of the Capital gains regime was much awaited but has been accompanied with an increase in tax rates, says Surabhi Marwah, Tax Partner, EY India. This is quite important from a markets and an individual investor’s point of view, changes as below

•⁠ ⁠STCG on certain financial assets shall attract tax at 20% as against current applicable rates.
•⁠ ⁠LTCG on all financial and non-financial assets increased to 12.5%
•⁠ ⁠Exemption on LTCG raised to 1.25 lakhs from existing 1 lakhs

Income Tax Budget 2024: Simplification of Capital gains

•⁠ ⁠STCG on certain financial assets shall attract tax at 20% as against current applicable rates.
•⁠ ⁠LTCG on all financial and non-financial assets increased to 12.5%
•⁠ ⁠Exemption on LTCG raised to 1.25 lakhs from existing 1 lakhs

Income Tax Budget 2024: Income Tax Slabs under new income tax regime revised for FY 2024-25

Income Tax Slabs for FY 2024-25 for the new income tax regime have been revised. The new income tax regime tax slabs are:

Up to Rs 3 lakh the tax is NIL

From Rs 3 lakh to Rs 7 lakh the tax rate is 5%

From Rs 7 lakh to Rs 10 lakh the tax rate is 10%

From Rs 10 lakh to Rs 12 lakh the tax rate is 15%

From Rs 12 lakh to Rs 15 lakh the tax rate is 20%

Above Rs 15 lakh income the tax rate is 30%

Income Tax Budget 2024 Live: Standard deduction hiked

Finance Minister Nirmala Sitharaman has announced a hike in standard deduction from the current Rs 50,000 to Rs 75,000 under the new income tax regime.

Budget 2024: Government announces that angel tax to be abolished

Income Tax Budget 2024 Live: Big changes in capital gains tax regime announced

Income Tax Budget 2024 Live: ‘Will continue to simplify taxes’

FM Nirmala Sitharaman said that the government will continue to work to simplify the tax regimes. For this purpose, a simplified tax regime without exemptions and deductions has been introduced in the last few years, she said.

Income Tax Budget 2024 Live: New tax regime appreciated by taxpayers, says FM Sitharaman

According to FM Nirmala Sitharaman, two-third income tax payers in the personal tax space have availed the new simplified tax regime in the last fiscal.