 "8 things Budget 2024 gave and 4 it took from your wallet")
The Union Budget 2024 was a win-win for some while others have expressed scepticism. Finance Minister Nirmala Sitharaman on Tuesday presented the budget that mentioned a number of key changes in terms of income taxes.
The government has implemented a simplified tax system for the fiscal year 2024-25, with updated income tax slabs, rates, and deductions aimed at making the tax structure more user-friendly and advantageous for taxpayers in different income ranges.
Also read: Calculation: Will you pay more income tax or less after Budget 2024 changes?
Here’s a look at the new tax measures that found a mention in the budget and the ones that were taken away or altered:
What’s new?
The new tax regime features revised income tax slabs along with tax relief in a boost to the middle class. Meanwhile, under the new tax regime (NTR), the standard deduction limit for salaried individuals and pensioners has been raised to Rs 75,000, marking a Rs 25,000 increase.
Under the new tax regime, the deduction for an employer’s contribution to National Pension Scheme (NPS) has been raised from the current 10 per cent threshold to 14 per cent, and this will be applicable exclusively to individuals choosing this updated taxation structure.
The exemption on long-term capital gains from equity has been raised to Rs 1.25 lakh, reflecting an increase of Rs 25,000.
The finance minister also announced that the time frame for re-assessing old income tax returns has been shortened.
Impact Shorts
More ShortsA reduction in the long-term capital gain (LTCG) tax of 12.5 per cent from 20 per cent has been notified.
The government has also introduced an NPS scheme for minors.
Gold and silver will become cheaper for customers owing to a reduction in customs duty.
What’s been taken away?
While taxpayers got something from the budget, some provisions are expected to affect them in the future.
Unlike LTCG, the short-term capital gains tax (STCG) rate has been hiked to 20 per cent from 15 per cent.
“Short-term gains on certain financial assets shall henceforth attract a tax rate of 20 percent, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate,” Finance Minister Nirmala Sitharaman said during her budget speech on July 23.
The government has also removed the benefit of indexation that was previously applicable to the sale of property, gold, and certain other assets.
Apart from this, Sitharaman said that individuals cannot declare their house rental income as business income to save tax.
Meanwhile, the Securities transaction tax and Futures and Options tax have also been hiked to 0.02 per cent and 0.1 per cent respectively.
With inputs from Economic Times
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