Finance Minister Nirmala Sitharaman offered a bonanza for four crore salaried individuals and pensioners with the Budget announcements for 2024-25. 

On Personal Income Tax Rates, FM Sitharaman announced two announcements to make for those opting for the new tax regime.

First, the standard deduction for salaried employees is proposed to be increased from ₹50,000 to ₹75,000.

Similarly, the deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000/-. This will provide relief to about four crore salaried individuals and pensioners, the Finance Minister said.

In the new tax regime, the tax rate structure is to be revised as follows;

* 0-3 lakh rupee - Zero

* 3-7 lakh - 5%

* 7-10 lakh - 10%

* 10-12 lakh - 15%

* 12-15 lakh - 20%

15 lakh and above - 30%

“Salaried employees in the new tax regime will save up to Rs 17,500 in income tax,” the Finance Minister said.

She said that as per data available till now for the last fiscal, more than two-thirds have availed the new personal income tax regime.

“Two tax exemption regimes for charities are proposed to be merged in one, the 5%  tax deducted at source (TDS) rate on many payments is being merged into are 2% and 20% applicable on repurchase mutual fund units,” said Sitharaman.

The FM also proposed to reduce the TDS for ecommerce operators to 0.1% from 1% earlier.

The finance minister proposed to decriminalise delay in payment of TDS up to the due date of filing statements for the same.

Moreover, long term capital gain on all financial and non financial assets reduced from 20% to 12.50% while corporate tax on foreign companies reduced to 35%.

“I propose to abolish the so-called Angel tax for all classes of investors to be abolished, to bolster the Indian start-up ecosystem,” said FM.

(With inputs from syndicated feed)

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