Finance Minister Nirmala Sitharaman announced the Union Budget 2024 on Tuesday, bringing forth a host of important changes and relief measures designed to benefit taxpayers. Here are ten key highlights of the Union Budget 2024:
The new income tax regime, a popular choice for many, will receive a substantial boost. The standard deduction for salaried employees under this regime will be significantly increased from ₹50,000 to ₹75,000. This means that salaried individuals will see a reduction in their tax liability, saving up to Rs 17,500 annually.
The new tax rates under the new income tax regime are as follows:
*
Rs 0-3 lakh:
Nil*
Rs 3-7 lakh:
5%*
Rs 7-10 lakh:
10%*
Rs 10-12 lakh:
15%*
Rs 12-15 lakh:
20%*
Above Rs 15 lakh:
30%Furthermore, the deduction on family pension will be enhanced from Rs 15,000 to Rs 25,000, providing much-needed relief for 4 crore salaried individuals and pensioners. This increase will directly impact their disposable income.
For those investing in their future, the deduction limit for the employer’s contribution to the National Pension System (NPS) will be raised from 10% to 14%. This move encourages long-term savings and retirement planning.
The government has also recognized the importance of smooth online transactions. The TDS rate on e-commerce transactions will be reduced to 0.1%, streamlining the process and making online shopping more convenient.
The budget also addresses TDS defaults and delays. Standard operating procedures will be released for handling TDS defaults, and the decriminalization of TDS delays up to the tax filing date will provide relief to taxpayers facing unintentional delays.
To ensure greater access to justice, the monetary limit for filing tax appeals will be increased. The limit for filing appeals before the Income Tax Appellate Tribunal (ITAT) will be raised to Rs 60 lakhs, while the limit for appeals in High Courts will be increased to Rs 2 crore and Rs 5 crore for appeals in the Supreme Court.
Startups, the engines of innovation and job creation, will benefit from the abolition of the Angel Tax. This tax, levied on share premiums received by startups, has been a significant hurdle. The elimination of Angel Tax will boost investor confidence and encourage further investment in startups.
The budget also aims to attract foreign investment by reducing the corporate tax rate for foreign companies from 40% to 35%. This move will make India a more competitive destination for foreign businesses.
