Budget 2024 :
1) Under the New Regime, Standard Deduction on Salary has been increased to 75000 & on Family pension to 25000// That would give a relief of ₹ 17500 /- to every tax payer who earns salary income.
2) New Regime tax rates will be as under :-
3-7 lac. 5% tax rate
7-10 lac 10% tax rate
10-12 lac 15% tax rate
12-15 lac. 20%
15 lac & above : 30%
3) Short term capital gain tax rate increased to 20% as almost every third person is dealing in purchase and sale of shares and mutual funds and is NOT following the CBDT Circular which stipulated such income to be shown as Business income. The assesses were showing it as income from Capital gains and availing tax benefits. Section 28(1)(iv) provides the definition of business income , which was not being adhered to.
4) Long term capital gain tax rate increased to 12.5% based upon the information received by the CBDT on the same issue.
Regular dealing in shares and mutual funds have been held to be business income and Not Capital gains.
5)Investment in listed schemes to be treated as Long term, after 1 year; others after 2 years
6) Long term Capital gain exempted upto 1.25 lac which was earlier pegged at ₹1 lac.
7) TDS rate on Rent paid by individuals decreased from five to 2% for residential units taken on rent where the rent being paid is more than 50000₹pm
8)Reassessment to be opened upto 3 years only and not beyond. However It can be reopened upto 5 years, if escaped income is more than 50 lacs, but the AO will have to substantiate his claim .
9) Charitable trust exemptions merged
10) Custom duty reduced on Cancer drugs & mobil phones
11) LLP voluntary closure procedure to be started
12) NPS deduction rate increased to 14%
13) MSMEs to get Collateral free government guaranteed Loans, upto Rs 100 crores
14) Public sector banks to make their own internal assessment of MSME’s financial position, for giving loans,instead of/basing it only on accounts of the loanee.
15) Interns to be employed by companies, to be paid one month wage, in 3 tranches
16) Vivad se Vishwas scheme 2024 launched to settle disputes and reduce frivolous litigation.
17) jewellery stocks sparkle upto 13 percent as FM cuts customs duty on Gold and silver.
18). Shares buy back to be taxed as dividend income.
19). Real Estate companies stocks slipped on higher taxation on sale of properties. Withdrawal of Indexation is being considered as a harsh step.
20) Boost to disposable income augurs well for FMCG companies.
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