Budget 2024: From Capital Gains To Personal Income Tax — All Changes At A Glance
Under the new tax regime, standard deduction has been hiked to Rs 75,000 from earlier Rs 50,000.
The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman on Tuesday, brought forth a slew of changes in taxation policies, aimed at fostering economic growth and simplifying the tax structure.
Sitharaman said the Budget introduced a balanced approach to taxation, emphasising simplification and rationalisation of tax rates while providing relief to various sectors of the economy.
Here is a comprehensive look at the key tax reforms that have been announced.
Capital Gains, Securities Transactions
Capital Gains Exemption: The limit of exemption on capital gains has been proposed at Rs 1.25 lakh annually.
Securities Transaction Tax: The STT on futures & options has been increased to 0.02% and 0.1%.
Long-Term Capital Gains: The LTCG tax has been raised from 10% to 12.5%. Listed financial assets held for over a year will now qualify as long term.
Personal Income-Tax Reforms
The tax rate structure under the new regime has been revised with varying rates:
Under the new tax regime, standard deduction has been hiked to Rs 75,000 from earlier Rs 50,000.
Sitharaman also announced an increase in the deduction for family pension for pensioners, raising it from the current Rs 15,000 to Rs 25,000. She emphasised that this enhancement is expected to provide relief to approximately 4 crore salaried individuals and pensioners.
Other Significant Tax Reforms
The tax deducted at source on e-commerce operators has been reduced to 0.1% from 1%.
Tax on certain assets: A flat tax rate of 20% will apply to specified assets, with the remainder taxed at applicable rates.
Unlisted bonds and debentures: These will attract capital gains tax as per applicable rates, irrespective of the holding period.
Angel-tax abolishment: Angel tax has been abolished for all classes of investors.
ESOPs for MNC professionals: Professionals in multinational corporations receiving employee stock ownership plans and investing up to Rs 20 lakh in movable assets abroad will not face penalisation.
Income-tax savings: Salaried employees stand to save up to Rs 17,500 in income tax.
Corporate tax rate: The corporate tax rate for foreign companies has been reduced to 25%.
