Union Budget 2024 : FM's income tax announcements 3.O

Budget 2024 Highlights

FM’s income tax announcements

• Income-tax slab rates changed for the lower slabs, for the new simplified income tax regime

• Standard deduction, for taxpayers opting for the new tax regime, at Rs 75,000, up from Rs 50,000 earlier

• NPS Vaatsalya for minor children announced in Budget 2024. Where parents can invest on behalf of their kids. Upon attaining majority, this can be converted to regular NPS

• Deduction on employers’ contribution to private sector employees’ NPS has been hiked to 14%, up from 10% earlier. Only for the new income-tax regime.

• Changes in capital gains tax regime. Long-term capital gains rate hiked to 12.5%, up from 10%

• Long-term capital gains income up to Rs 1.25 lakh exempt from tax

• Holding period of capital gains tax streamlined: All listed financial assets held for more than a year: long-term. All unlisted financial and non-financial asserts held for more than 2 years: long-term.

Revised tax slabs under new regime

FM revises tax structure under new tax regime

Limit of STCG tax hiked to 20%, LTCG raised from 10% to 12.5%

Corporate tax rate on foreign companies reduced to 25%