1.In case of Salaried Employees, standard deduction increased from INR 50,000 to INR 75,000 for those opting for the new Tax Regime.
2.Tax Slabs revised for New Tax Regime. This is applicable for the FY 2024-25. The comparison between the tax slabs post-budget and pre-budget is as follows:
| Tax Slab for FY 2023-24 | Tax Rate | Tax Slab for FY 2024-25 | Tax Rate |
| Upto ₹ 3 lakh | Nil | Upto ₹ 3 lakh | Nil |
| ₹ 3 lakh – ₹ 6 lakh | 5% | ₹ 3 lakh – ₹ 7 lakh | 5% |
| ₹ 6 lakh – ₹ 9 lakh | 10% | ₹ 7 lakh – ₹ 10 lakh | 10% |
| ₹ 9 lakh – ₹ 12 lakh | 15% | ₹ 10 lakh – ₹ 12 lakh | 15% |
| ₹ 12 lakh – ₹ 15 lakh | 20% | ₹ 12 lakh – ₹ 15 lakh | 20% |
| More than 15 lakh | 30% | More than 15 lakh | 30% |
3.Deduction for employer’s NPS contributions proposed to increase from 10% to 14% of employee salary for those opting for new Tax Regime.
4.Long-term capital gains on all financial and non-financial assets will attract a tax rate of 12.5%, but indexation benefit is apparently removed. Additionally, the limit of exemption for capital gains will be set at Rs 1.25 lakh per year. In the case of all unlisted financial and non-financial assets, the holding period will be for at least two years to be classified under the long-term asset category, according to the Budget announcement.
5.The Monitory limit for reopening the Assessment increased to Rs. 50 Lacs of Income escaping assessment.
6.Proposed withdrawal of Equalisation levy of 2% for foreign companies with effect from 1st August 2024.
7.Rate of Tax for Foreign Company reduced to 35% from 40%
8.Insertion of section 194T which is applicable in the case of partnership firms wherein a firm if pays any sum in the nature of salary, remuneration, commission, bonus or interest to a partner, shall, at the time of credit of such amount to the account of the partner (including the capital account) or at the time of payment thereof, whichever is earlier, deduct income-tax at the rate of 10%. Sub-section (2) to section 194T proposed says that such deduction shall be applicable where the aggregate of the amounts credited or paid or likely to be credited or paid exceeds Rs.20,000. The cap on Partner’s remuneration is also increased.
9.TDS rate for following sections have been reduced from 5% to 2%
| Section | Nature of payment | Effective Date |
| 194D | Payment of Insurance Commission | 01.04.2025 |
| 194DA | Payment in respect of Life Insurance Policy | 01.10.2024 |
| 194G | Payment for commission on sale of lottery tickets | 01.10.2024 |
| 194H | Payment of commission and brokerage | 01.10.2024 |
| 194IB | Payment of rent by certain individuals or HUF | 01.10.2024 |
10.TDS Correction Statement filing period restricted to 6 years.
11.STT on F&Os proposed to be increased to 0.02% and 0.1% respectively. The STT on futures will rise from 0.0125% to 0.02%, while the STT on options will increase from 0.0625% to 0.10%
India Business Head
Mrs. Dipali Phadke is a qualified Chartered Accountant with more than 20+ years of experience in the field of Accounting, Taxation and Payroll. She is the backbone of Company’s Operations and heads India Business at Finsmart Accounting
