Income Tax Slabs 2024-25: No major changes! Know what salaried and senior citizens will get

New Delhi: Finance minister Nirmal Sitharaman said the government’s endeavour was to simplify the tax regime with the introduction of the new tax regime. In FY24, over two-thords availed the new income tax regime. Comprehensive review of Income Tax Act started by the finance minister. To be completed in 6 months.

Tax regime for charities has already been simplified:

5 per cent TDS rate for many payments merged
20 per cent TDS rate by repurchase on UTIs and MFs withdrawn
TDS rate cut to 0.1 per cent from 1 per cent
Decreminalise payment of TDS up to due date for filing statement
SOP date for TDS defaults and compounding guidelines
Simplification of reassessment of tax — can be reopened beyond 3 years only if the escaped income is Rs 50 lakh or more up to 5 years

Capital Gains tax

Short term gains tax of 20 per cent on certain assets
Applicable tax rate on all non-financial assets is 12.5 per cent
Exemption limit raised to Rs 1.25 lakh per year.
Listed financial assets held above 1 year counted as long term gains
Other assets must be listed for 2 years
Debt MFs, market linked debentures will invite capital gains tax at applicable rate

Personal income tax

New tax regime option will provide standard deduction of Rs 75,000 from Rs 50,000 earlier
Deduction on family pension enhanced to Rs 25,000 from RS 15,000 — 4 crore pensioners to benefit
Tax rate structure revised
Nil on Rs 0-3 lakh
Rs 3-7 lakh taxed at 5 per cent
Rs 7-10 lakh to be taxed at 10  per cent
Rs 10-12 lakh to be taxed at 15 per cent
Rs 12-15 lakh to invite 20 per cent
Above 15 lakh taxed at 30 per cent

Tax Relief and Revised Tax Slabs in New Tax Regime 👇

🔸 Income tax saving of up to ₹ 17,500/- for salaried employee in new tax regime

🔸 #IncomeTax Relief for around Four Crore Salaried Individuals and Pensioners

🔸 Standard deduction for salaried employees to be increased… pic.twitter.com/2m7pPRmzgP

— PIB India (@PIB_India) July 23, 2024

Salaried employee can save up to Rs 17,000 in personal income tax.

Higher securities transactions tax
Tax on income received on buyback of shares
NPS deduction hiked to 14 per cent from 10 per cent
NPS under new tax regime
Up to Rs 20 lakh foreign investment to be de-penalised

Finance Minister Nirmala Sitharaman’s 7th straight Budget and Modi government 3.0’s first Budget tried to provide some relief to taxpayers who are fighting inflation. From tomatoes to dal, the common citizen is forced to consider choices to ensure that there are staples on the table.

At the same time, with the world expected to witness a slowdown on account of record-high central bank interest rates, India’s demographic advantage — being the world’s most populous country — is expected to drive consumption and keep goods and services sectors running to propel the economy to some of the fastest growth rates in the world.

Against this backdrop, let us take a look at the existing income tax structure in India. The personal income tax structure is divided into two regimes, namely, the old tax regime and the new tax regime.

The old tax regime is a deductions-based regime which allows taxpayers to show expenditures and savings that allow them to reduce their tax outgo.

Old Tax Regime

Here are the tax slabs under the old tax regime:

Deductions on property purchase under old tax regime:

Deductions on savings and investment in govt schemes:

New Tax Regime

Here are the tax slabs under new tax regime:

 Income Tax Slabs 2024-25, New Income Tax Changes for Salaried and Senior Citizens: The finance minister provided relief to senior citizens on pensions and revised tax slabs under the new tax regime.  Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today