These key changes in the Union Finance Budget 2024 aim to provide tax relief, encourage long-term investment, and support economic growth through strategic policy shifts.
Income Tax Slabs Revisions: The new tax regime has revised income tax slabs, which now allow for greater tax savings. The revised slabs are as follows:
-Up to Rs. 3,00,000: NIL
-Rs. 3,00,000 to Rs. 7,00,000: 5%
-Rs. 7,00,001 to Rs. 10,00,000: 10%
-Rs. 10,00,001 to Rs. 12,00,001; 15%
-Rs. 12,00,001 to Rs. 15,00,001: 20%
-Above Rs.15,00,000: 30%
This Changes is aimed at reducing the tax burden on lower-income earners.
Standard Deduction Increase: For Salaried employees, the Standard deduction has been increased from Rs. 50,000 to Rs. 75,000, providing additional relief and enhancing disposable income, particularly for- middle-income earners.
Family Pension Deduction: The deduction limit for family pensioners has been raised from Rs. 15,000 to Rs.25,000.
Long-Term Capital Gains (LTCG) Tax: The LTCG Tax rate has been proposed to increase from 10% to 12.5%
Short-Term Capital Gains (STCG) Tax: Short-Term Capital gains on certain assets will attract a 20% tax. while all other financial and non-financial assets will be taxed at the applicable income tax rate.
Exemption limit for Capital Gains: The exemption limit for capital gains on certain financial assets has been increased to Rs. 1.25 lakh per year.
Securities Transaction Tax: There has been a hike in STT on futures and options securities by 0.02% and 0.1% discourage retails investors from trading in the risky market segment.
Angel Tax Abolition: The angel tax for all classes of investors has been eliminated, which is expected to attract more investment into startups and support the Indian startup ecosystem.
Tax Rates Retention: No changes in direct and Indirect tax rates, including import tax been proposed, retaining the same tax rates for direct and indirect tax.
Focus Areas: The Government focus areas highlighted in the budget include productivity, Job creation, social justice, urban development, energy security infrastructure and innovation.
These key changes in the Union Finance Budget 2024 aim to provide tax relief,
