Amended Finance Bill 2024
Finance Minister (FM) Nirmala Sitharaman was presented the Amended Finance Bill 2024 on 23rd July 2024. To achieve the above, the various proposals for amendments are organized under the following heads:—
- (A) Rates of income-tax;
- (B) Measures to promote investment and employment;
- (C) Simplification and Rationalisation;
- (D) Widening and deepening of tax base and Anti-Avoidance;
- (E) Tax administration;
Income Tax Slab for AY 2025-26
The income tax slabs in the new tax regime have been tweaked for the current FY 2024-25 (AY 2025-26). The changes in the income tax slabs raised the upper limit in two slabs by Rs 1 lakh. The Rs 3 lakh-Rs 6 lakh slab has become Rs 3 lakh-Rs 7 lakh; and the Rs 6 lakh-Rs 9 lakh slab has become Rs 7 lakh-Rs 10 lakh.
Here are the new income tax slabs under new tax regime.
Income tax slabs under new tax regime for FY 2024-25
| Income tax slabs (Rs) |
Income tax rate (%) |
| From 0 to 3,00,000 | 0 |
| From 3,00,001 to 7,00,000 | 5 |
| From 7,00,001 to 10,00,000 | 10 |
| From 10,00,001 to 12,00,000 | 15 |
| From 12,00,001 to 15,00,000 | 20 |
| From 15,00,001 and above | 30 |
Changes made in the new tax regime in Budget 2024
- Hike of standard deduction limit to Rs 75,000 from Rs 50,000 – an increase of Rs 25,000. This standard deduction is available to those individual taxpayers who are having income from salary or pension
- Hike in standard deduction limit for family pensioners to Rs 25,000 from Rs 15,000 – an increase of Rs 10,000. This standard deduction is available to those individual taxpayers who are receiving family pensions.
- Hike in deduction available on the employer’s contribution to the NPS account to 14% from 10%. This hike in deduction will help the employees to save more tax in the new tax regime.
Finance Amendment Bill 2024
- Short term gains on certain financial assets to attract a tax rate of 20 per cent.
- Long term gains on all financial and non-financial assets to attract a tax rate of 12.5 per cent.
- Exemption limit of capital gains on certain financial assets increased to ₹ 1.25 lakh per year.
- Angel tax for all classes of investors abolished to bolster start-up eco-system,.
- Simpler tax regime for foreign shipping companies operating domestic cruises to promote cruise tourism in India.
- Safe harbour rates for foreign mining companies selling raw diamonds in the country.
- Corporate tax rate on foreign companies reduced from 40 to 35 per cent.
- Security Transactions Tax on futures and options of securities increased to 0.02 per cent and 0.1 per cent respectively.
- Income received on buy back of shares in the hands of recipient to be taxed.
- Deduction of expenditure by employers towards NPS to be increased from 10 to 14 per cent of the employee’s salary.
- Non-reporting of small movable foreign assets up to ₹20 lakh de-penalised.
- Equalization levy of 2 per cent withdrawn.
- ‘Vivad Se Vishwas Scheme, 2024’ for resolution of income tax disputes pending in appeal.
- Monetary limits for filing direct taxes, excise and service tax related appeals in Tax Tribunals, High Courts and Supreme Court increased to ₹60 lakh, ₹2 crore and ₹5 crore respectively.
- Safe harbour rules expanded to reduce litigation and provide certainty in international taxation.
- All remaining services of Customs and Income Tax including rectification and order giving effect to appellate orders to be digitalized over the next two years.
- Customs duties on gold and silver reduced to 6 per cent and that on platinum to 6.4 per cent.