Budget 2024 Highlights on Income Tax PDF

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Union Budget 2024-25
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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

  1. The slab rates in the new tax regime have been changed.
  2. 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.
  3. Standard Deduction: The standard deduction for salaried employees is proposed to be increased from Rs 50,000 to Rs 75,000.
  4. Family Pension: Deduction on family pension for pensioners is proposed to be increased from Rs 15,000 to Rs 25,000.
  5. The government raised the deduction limit for employers’ contributions to the National Pension System (NPS) from 10% to 14%.
  6. 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.

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