Budget 2024 Highlights on Income Tax
Income Tax Slab for AY 2024-25 for Salaried Person
Income Range | Tax Rate |
---|---|
Up to Rs 3 lakh | No tax |
Rs 3 lakh to Rs 7 lakh | 5% |
Rs 7 lakh to Rs 10 lakh | 10% |
Rs 10 lakh to Rs 12 lakh | 15% |
Rs 12 lakh to Rs 15 lakh | 20% |
Above Rs 15 lakh | 30% |
* Salaried employee in the new tax regime stands to save up to ₹ 17,500/- in income tax.
Changes Announced in the New Tax Regime in Budget 2024
- The slab rates in the new tax regime have been changed.
- Salaried employees (under the new tax regime) will save up to Rs 17,500 annually in taxes as per the changes proposed in the recent Union Budget 2024-25.
- Standard Deduction: The standard deduction for salaried employees is proposed to be increased from Rs 50,000 to Rs 75,000.
- Family Pension: Deduction on family pension for pensioners is proposed to be increased from Rs 15,000 to Rs 25,000.
- The government raised the deduction limit for employers’ contributions to the National Pension System (NPS) from 10% to 14%.
- NPS-Vatsalya: It is a soon-to-be-started plan for contribution by parents and guardians for minors. On attaining the age of majority, the plan can be converted into a normal NPS account.
Highlights Budget 2024 on Income Tax
- 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- Equalization levy of 2 per cent withdrawn.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.