Finance Minister Nirmala Sitharaman announced the Union Budget 2024 on Tuesday, bringing several important changes and relief measures for taxpayers.
Here are ten key highlights of the Union Budget 2024:
-The new income tax regime will see a major relief. The standard deduction for salaried employees under this regime will increase from ₹50,000 to ₹75,000.
-New tax rates under the new 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%
-Due to the changes, salaried employees will save up to Rs 17,500 annually in taxes.
-The deduction on family pension will be increased from Rs 15,000 to Rs 25,000, benefiting 4 crore salaried individuals and pensioners.
-The deduction limit for the employer's contribution to the National Pension System (NPS) will be raised from 10% to 14%.
-The TDS rate on e-commerce transactions will be reduced to 0.1%, making online transactions smoother.
-The government will release standard operating procedures for TDS defaults and decriminalise TDS delay up to the tax filing date.
-The monetary limit for filing tax appeals will be increased to Rs 60 lakhs for ITAT, Rs 2 crore for high courts, and Rs 5 crore for the Supreme Court.
-The Angel Tax has been abolished, providing relief to startups.
-The corporate tax rate for foreign companies will be reduced from 40% to 35%.
