What FM gave and took away from you in Budget 2024 impacting your money and taxes
July 23, 2024
Synopsis
Who gains and who losses in Budget 2024: The finance minister Nirmala Sitharaman has announced many changes in the Budget 2024 presented today. However, some will have to pay more taxes going forward and some are likely to pay less taxes going forward.
In Budget 2024, the Finance Minister Nirmala Sitharaman announced several important changes to income taxes. These changes received mixed reactions from the common man, with some people feeling happy and others feeling disappointed. Let's take a closer look at the various tax measures that were introduced, and those that were altered or eliminated.
What FM gave in Budget 2024
Following are the things given by finance minister in Budget 2024
1. Income tax slabs in new tax regime are relaxed
2. Standard deduction limit for salaried and pensioners are hiked to Rs 75,000 - an increase of Rs 25,000
3. Standard deduction limit for family pensioners hiked to Rs 25,000 -an increase of Rs 15,000
4. Deduction on employer's contribution to NPS account hiked to 14% from 10% - brought on par with the government employees
5. Exemption on capital gains from long term equity hiked to Rs 1.25 lakh - an increase of Rs 25,000
6. Simplification of holding period to determine short term or long term capital gains for taxation purposes
7. Reduction in LTCG tax rate from 20% to 12.5% - a decrease by 7.5%
8. NPS scheme for minors announced
9. Time limit for re-assessment of old income tax returns reduced
10. TCS paid on foreign remittances, foreign travels etc. can be used to lower TDS on salary
11. Buying of gold and silver to become cheaper due to cut in customs duty
What FM took away in Budget 2024
Following the tax changes that are likely to pinch the taxpayers in the future:
1. STCG tax rate hiked to 20% from 15% - an increase of 5%
2. Indexation benefit available on sale of property, gold and other certain assets removed
3. One cannot declare the house rental income as business income to save tax
4. Securities transaction tax (STT) on F&O hiked to 0.02% and 0.1%
[The Economic Times]
