DBT Bureau
Bengaluru, 23 July 2024
Union Budget 2024 was heavy on taxation with several tweaks done in both direct and indirect tax regimes. While the budget provisions provide some tax relief to individual tax payers in the direct tax front, stock market investments are all set to be costlier under the new regulations.
Here are the highlights of key changes to taxation:
Direct Taxation:
- Salaried individuals will now get a standard deduction of Rs 75,000 from current Rs 50,000
- Deduction on family pension increased to Rs 25,000 from existing Rs 15,000.
- Lowest slab in new tax regime raised to Rs 3 lakh from current Rs 2.5 lakh.
- Under new tax regime, salaried employee will save up to Rs 17,500 in income tax
- STT (Securities Transaction Tax) on F&Os (future and options) to be increased to 0.02% and 0.01% respectively.
- Abolition of Angel Tax
- TDS (Tax Deducted at Source) for ecommerce operators reduced from 1% to 0.1%.
- Tax rate on foreign companies to be reduced to 35% from present 40%.
- Non reporting of foreign movable asset income up to Rs 20 lakh not to be penalized.
- Long-term Capital Gains (LTCG) tax has been increased to 12.5% from current 10% with exemption limit increasing to Rs 1.25 lakh from current Rs 1 lakh.
- Short-term Capital Gains Tax (STCG) increased to 20% from current 15%
- Income from buy-back of shares by companies will be chargeable in the hands of recipient investor as dividend. Cost of such shares shall now be treated as a capital loss to the investor.
Indirect Taxation:
- Basic Customs Duty reduced to 15% on mobile phones, mobile PCBA (printed circuit board assembly) and mobile charger.
- Customs duties on gold and silver are reduced to 6% and that on platinum to 6.4%
- Customs duties on 25 critical minerals will now be exempted.
- Basic Customs Duty will be raised on PVC flex banners from 10% to 25%.
