New Tax Regime Slabs Changed as well Standard Deduction Up for new tax regime
Finance Minister Mrs.Nirmala Sitharaman in her budget 2024-25 presentation proposed to increase the standard deduction for salaried employees from ₹50,000 to ₹75,000. Also, the deduction on family pension for pensioners is proposed to be enhanced from ₹15,000 to ₹25,000 under the new tax regime.
The FM announced changes in new tax regime slabs
Taxable Income (2024-25)
New Tax Rate (2024-25)
Taxable Income (2023-24)
Existing Tax rate (2023-24)
Up to Rs.3 lakh
Nil
Up to Rs.3 lakh
Nil
From RS 3,00,001 to 7,00,000
5%
From RS 3,00,001 to 6,00,000
5%
From RS 7,00,001 to 10,00,000
10%
From 6 00001 to 900000
10%
From 10,00,001 to 12,00,000
15%
From 900001 to 1200000
15%
From RS 12,00,001 to 15,00,000
20%
From RS 12,00,001 to 15,00,000
20%
Above 15,00,000
30%
Above 15,00,000
30%
Other income tax budget proposals:
Exemption of capital gains increased to Rs 1.25 lakh per year for certain assets
Unlisted bonds, debentures, debt mutual funds, and market-linked debentures are to be taxed at a slab rate
Short-term gains on some financial assets to attract 20% and
LTCG rose to 12.5% from 10%
The corporate tax rate for foreign companies has been reduced to 25%. This reduction is aimed at making the Indian corporate tax landscape more attractive to foreign businesses and investors.
Under the new tax regime, income received on the buyback of shares will now be taxed in the hands of the recipient. This ensures that shareholders are directly taxed on the gains they realize from buybacks.
The Securities Transaction Tax on Futures contracts has been increased to 0.2%, and on Options contracts, it has been increased to 0.1%. This adjustment will affect the cost of trading these financial instruments.
2% TDS is being withdrawn from Mutual funds
NPS contribution limit for employers in the private sector raised from 10% to 14% of the employee’s basic salary
Two tax exemption regimes for charities to be merged into one,
Government to reduce customs duty on gold, silver to 6%, platinum to 6.4%,
Government to exempt three more medicines for cancer treatment from customs duty,
An assessment can be reopened after three years only if escaped income is Rs 50 crore or more, announces FM
Under the NPS Vatsalya scheme, parents can invest in their children. Once the child becomes an adult, the account can be transferred to the child. More details on NPS Vatsalya will be released later.
The credit of TCS is proposed to be given in salary
“I propose to reduce the BCD (basic customs duty) on mobile phones and mobile PCBS (“Printed circuit boards) and mobile chargers to 15%,” said Finance Minister Nirmala Sitharaman.
The Tax Deducted at Source (TDS) rate on e-commerce operators has been reduced from 1 percent to 0.1 percent. This reduction lowers the tax compliance burden on e-commerce businesses and facilitates smoother transactions.
The abolition of the angel tax provides significant relief to startups by eliminating the tax on investments received above the fair market value of their shares. This move is expected to foster innovation and growth in the startup ecosystem.
Fiscal deficit is estimated at 4.9 per cent of GDP: FM announces in Budget for 2024-25.