Budget 2024 – Latest updates | Lots of changes in Direct tax proposed and revamp of Income tax act in 6 months
Highlights from Final Budget 2024 (July 2024):
To remove and resolve all demand under Income tax assessment within 6 months.
To merge the two section for exemption of trust which could be section 10(23C) and Section 11.
Merge TDS rates from 5% to 2%.
TDS on E-commerce transaction reduced from 1% to 0.1%.
TCS credit to be allowed while calculating TDS on salary, this could be because of TCS on foreign remittance under LRS etc.
Decriminalize delay in payment of TDS if paid till the time of filing the statement.
Simplify reassessment proceedings wherein now reassessment can be opened only upto 5 years if the total income escaping assessment exceeds Rs.50 lakh instead of 10 years which was mentioned earlier.
Tax rates on capital gain increased:
STCG rates on certain assets will be made 20%.
LTCG rates on certain assets will be 12.5%.
1.25 lakh exemption is proposed on certain long term capital gain which could be an increase from Rs.1 lakh under 112A.
Listed secrurities will become long term after 1 year and unlisted securities will become long term after 2 years.
Vivad se vishwas, 2024 announced.
Appeal limit to appeal before Tribunal, High court and Supreme court under various laws increased to Rs.60lakh to Rs.2crore, Rs.5crore.
Buyback will now be taxable in hands of shareholder.
Abolish Angel Tax.
EL 2.0 will be removed.
Rs.20 lakh limit will be made under black money act for disclosing foreign assets such as RSU etc.
New tax regime announced:
| Particulars | Tax rate |
| 0-3 lakh | 0% |
| 3-7 lakh | 5% |
| 7-10 lakh | 10% |
| 10-12 lakh | 15% |
| 12-15 lakh | 20% |
| Above 15 lakh | 30% |
Standard deduction on new tax regime increased from Rs.50000 to Rs.75000.
Deduction on family pension increased from Rs.15000 to Rs.25000.
We shall share a detailed discussion soon.
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