Published: 23rd July 2024
By: Value Research
Tax slabs under the new tax regime have been revised.
New tax regime (existing) Tax rate New tax regime (revised) Tax rate Up to Rs 3 lakh 0% Up to Rs 3 lakh 0% Rs 3-6 lakh 5% Rs 3-7 lakh 5% Rs 6-9 lakh 10% Rs 7-10 lakh 10% Rs 9-12 lakh 15% Rs 10-12 lakh 15% Rs 12-15 lakh 20% Rs 12-15 lakh 20% Above Rs 15 lakh 30% Above Rs 15 lakh 30%
The standard deduction for salaried taxpayers will be increased from Rs 50,000 to Rs 75,000. This, coupled with the revisions in the new tax regime, is expected to help those in the highest tax bracket save Rs 17,500 in taxes every year.
This budget was a thumbs down for investors since the STCG (short-term capital gains tax) was increased from 15% to 20%. Further, the LTCG (long-term capital gains tax) has also been spiked from 10% to 12.5%.
While the jump in capital gains tax was a downer, the rise in the basic exemption limit for LTCG tax from Rs 1 lakh to Rs 1.25 lakh per annum will give some relief to investors.
In a bid to regulate F&O (futures and options) trading, the STT (securities transaction tax) on Options’ sales will increase from 0.0625% to 0.1%, while that on Futures’ sales will rise from 0.02% to 0.1%.
1) Introducing NPS Vatsalya for minors, 2) Employer’s tax-free contribution towards NPS to increase from 10% to 14% of employee’s salary