Budget 2024 Highlights
Personal Income Tax:
- New Tax Regime Changes: Three new tax slabs have been introduced, resulting in a tax benefit of Rs. 17,500 for individuals in the 3-12 lakh income bracket.
- Standard Deduction Increase: The standard deduction for the new tax regime has increased from Rs. 50,000 to Rs. 75,000.
- Family Pension Deduction Increase: The family pension deduction for the new tax regime has increased from Rs. 15,000 to Rs. 25,000.
- NPS Deduction Increase: The deduction for private employees’ contributions to NPS has been enhanced from 10% to 14% under the new tax regime.
Corporate Taxes:
- Foreign Companies Tax Rate Reduction: The tax rate for foreign companies has been reduced from 40% to 35%.
- Uniform Long-Term Capital Gains Tax Rate: A uniform long-term capital gains tax rate of 12.5% has been introduced, applicable to various financial assets.
- Indexation Removal: The benefit of indexation for long-term capital gains has been removed.
- Increased Exemption Limit: The exemption limit for long-term capital gains on STT-paid equity shares and units of equity-oriented funds has increased from Rs. 1 lakh to Rs. 1.25 lakh.
- Reduced Holding Period: The holding period for long-term capital gains on gold, listed debentures, listed bonds, and mutual fund units has been reduced from 36 months to 24 months.
- Short-Term Capital Gains Tax: The short-term capital gains tax rate on STT-paid equity shares or units of equity-oriented funds has been increased from 15% to 20%.
Other Tax Changes:
- Capital Gains Exemption Limit: The capital gains exemption for gifts, wills, or irrevocable trusts has been limited to individuals or Hindu Undivided Families (HUFs).
- Excess Consideration for Private Companies: Amounts received by private companies in excess of fair value will no longer be taxable.
- TDS Rate Changes: The TDS rate on commission has been reduced from 5% to 2%, and the TDS rate on rent under Section 194-IB has been reduced from 5% to 2%.
- Lower Deduction of TDS: A lower deduction of TDS under Sections 194Q/206C(1H) is allowed for buyers and sellers.
- TDS/TCS on Salary and Interest: TDS/TCS on salary and interest is now considered for determining TDS on salary income.
- TCS on Foreign Remittances: TCS on foreign remittances of children can be claimed by parents.
- TCS on Luxury Goods: A TCS of 1% has been introduced on all luxury goods valued above Rs. 10 lakh.
- TDS on Salary, Interest to Partners: TDS on salary, interest to partners above Rs. 20,000 is now applicable at a rate of 10%.
- TDS on Sale of Immovable Property: TDS on the sale of immovable property above Rs. 50 lakh is now applied on an aggregate limit even if there are multiple buyers.
- Interest on Late Payment of TCS: The interest on late payment of TCS has increased from 1% to 1.5%.
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