With the start of the new fiscal year (FY 2024-25), there will be some noteworthy changes. These changes will be implemented from April 1, 2024. The corresponding changes from April 1, 2024, will add new regulations or reforms to the prevailing ones. India’s Finance Minister, Smt. Nirmala Sitharaman has presented several new income tax rule changes in the budget 2024. In this article, we have detailed the significant changes that will take effect following the recent budget announcement.
Changes in Income Tax Slabs
Total Income | Tax rate |
₹0 to ₹3,00,000 | 0% |
₹3,00,001 to ₹7,00,000 | 5% |
₹7,00,001 to ₹10,00,000 | 10% |
₹10,00,001 to ₹12,00,000 | 15% |
₹12,00,001 to ₹15,00,000 | 20% |
Above ₹15,00,000 | 30% |
Additional Benefits to Taxpayers Opting for New Regime
- The standard deduction limit under the head salary has been increased from Rs. 50,000 to Rs. 75,000.
- The limit for deduction of family pension has also been increased to Rs. 20,000.
- Deduction on employer’s contribution u/s 80CCD(2) has been increased to 14% of salary and dearness allowance.
Change in the Rebate Limit
The introduction of the new tax regime has increased the rebate limit. As per the old tax regime, the applicable rebate limit is Rs.12,500 for incomes up to Rs.5 lakhs. However, under the new tax regime, this rebate limit has increased to Rs.25,000 if the taxable income is less than or equal to Rs.7 lakhs. Note that the Section 87A rebate is applicable under both income tax regimes. Then, the budget announcement increased the taxable limit to Rs.7 lakhs from Rs.5 lakhs under the new tax regime.
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Changes in Taxation on Capital Gains
Budget 2024 has made significant changes on the tax implications on the capital gains which are as under:
- Holding period for determining long term and short term has been simplified, for all listed securities – period of 12 months is to be considered and for other assets period of 24 months should be considered for determining wheether the asset is a long term capital asset or not.
- Further, no indexation will be available for sale made from 23rd July, 2024 for any long term capital asset.
- LTCG Tax Rate u/s 112A and 112 have been changed to 12.5% from 23rd July, 2024.
- STCG Tax Rate u/s 111A has been increased to 20% from 23rd July, 2024.
- Further, exemption limit u/s 112A has been increased from Rs. 1 lakh to Rs. 1.25 lakhs.
- Buyback Tax has been revamped wherein from 1st October, 2024 buybacks will be taxable in the hands of the receipient as deemed dividneds.
Above are the major changes with regard to Income Tax in Budget 2024. We at ebex consulting provides ITR filling services. Hence if you are looking for CA for ITR filling in Gurgaon, you can contact us for best services.
