Key Taxation Updates from Budget 2024-25
Posted on: 23/Jul/2024 1:13:44 PM
The Government of India has introduced several significant changes in the Budget 2024-25, aimed at simplifying the tax structure and providing relief to taxpayers. Finance Minister announced a series of updates that impact both individual and corporate taxpayers.
Key Highlights:
Capital Gains:
- The exemption limit for capital gains has been proposed at Rs 1.25 lakh per year.
- The Long Term Capital Gains (LTCG) tax rate has been increased from 10% to 12.5%.
- Short-term gains on certain financial assets will be taxed at 20%, while the applicable tax rate will apply to others.
- Listed financial assets held for more than a year will now be classified as long-term.
- Unlisted bonds and debentures, regardless of the holding period, will attract capital gains tax at the applicable rates.
Securities Transaction Tax (STT):
STT on Futures and Options (F&O) has been increased to 0.02% and 0.1%.
Corporate Tax:
The corporate tax rate for foreign companies has been reduced to 25%.
Angel Tax:
The Angel Tax has been abolished for all classes of investors, providing a significant relief to startups and investors.
ESOPs and Investments Abroad:
Professionals in multinational companies who receive ESOPs and invest in movable assets abroad up to Rs 20 lakh will no longer face penalties, as these actions have been decriminalized.
Personal Taxation:
- Under the new tax regime, the standard deduction has been increased from Rs 50,000 to Rs 75,000.
- Deduction on family pension for pensioners has been enhanced to Rs 25,000.
- Salaried employees will save Rs 17,500 in income tax under the new tax structure.
New Tax Regime Structure:
- 0-3 lakh: 0%
- 3-7 lakh: 5%
- 7-10 lakh: 10%
- 10-12 lakh: 15%
- 12-15 lakh: 20%
- Above 15 lakh: 30%
These changes reflect the government`s commitment to easing the tax burden on individuals and businesses, while also encouraging investment and compliance. The Budget 2024-25 aims to create a more transparent and efficient tax system, fostering economic growth and stability.
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