𝐔𝐧𝐢𝐨𝐧 𝐁𝐮𝐝𝐠𝐞𝐭 2024: 𝐃𝐢𝐫𝐞𝐜𝐭 & 𝐈𝐧𝐝𝐢𝐫𝐞𝐜𝐭 𝐓𝐚𝐱 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬

𝐃𝐢𝐫𝐞𝐜𝐭 𝐓𝐚𝐱𝐞𝐬

• Standard deduction for salaried employees under New tax regime increased from ₹50,000 to ₹75,000.
•  Revised tax rate structure under New Tax Regime:
  The New Slabs in the New Regime in Budget 2024,
  0-3 Lakh – Nil,
  3-7 Lakh – 5%,
  7-10 Lakh – 10%,
  10-12 Lakh – 15%,
  12-15 Lakh – 20%,
  Above 15 Lakh – 30%.
• The effect of the above slab rate is that till Financial Year 2023-24 tax on income of Rs. 10 lacs was Rs. 60,000 but after the above change tax will be Rs. 40,000.
•  Deduction on family pension for pensioners enhanced from ₹15,000/- to ₹25,000/-.
•  Tax rate on Short Term Capital Gain increased to 20% on certain financial assets. Earlier the rate was 15%.

•  Uniform rate of 12.5% on all Long-Term Capital Gain. On assets like equity shares or equity-oriented Mutual Fund units, the previous tax rate was 10%. On other assets, this rate was 20%.
•  Exemption limit of capital gains on certain financial assets increased to ₹1.25 lakh per year. No indexation benefit will now be available on Long Term Capital Gains.
• Only 12 months and 24 months will be used to classify assets. The 36-month holding period has been removed. For listed securities, assets held for up to 12 months are considered short-term. For other assets, assets held up to 24 months are considered short-term.
• Two tax exemption for charities to be merged into one.
• TDS rate reduced from 5% to 2% on payments under the following sections: 194D, 194DA, 194G, 194H, 194IB, 194M, 194O.
• TDS rate on e-commerce operators reduced from 1% to 0.1% .
• Assessment can be reopened up to 5 years instead of 10 years from the end of AY only if the escaped income is ₹50 lakh or more .
• Re-introduction of scheme of block assessment for cases in which search u/s 132 or requisition u/s 132A has been initiated.
• Introduction of ‘Vivad Se Vishwas Scheme, 2024’. After seeing a huge hit from previous scheme government has introduced a new scheme for ongoing cases as on 22.07.2024.
• Monetary limits for filing direct taxes, excise, and service tax related appeals in Tax Tribunals, High Courts, and Supreme Court increased to ₹60 lakh, ₹2 crore, and ₹5 crore respectively.
• Angel tax for all classes of investors abolished.
• STT on futures and options of securities increased from 0.01 percent to 0.02 percent.
• Income received on buyback of shares in the hands of the recipient to be taxed.
• Deduction of expenditure by non-govt employers towards NPS to be increased from 10% to 14% of the employee’s salary.

Indirect Taxes

• Three prominent cancer drugs fully exempted from custom duty.
• BCD on mobile phone, PCBA, and mobile charger reduced to 15%.
• Customs duties on gold and silver reduced to 6% and that on platinum to 6.4%.