Budget 2024 For Common Man: From New Tax Rate Structure, Standard Deduction To NPS
By Fnf correspondent | PUBLISHED: 23, Jul 2024, 18:41 pm IST | UPDATED: 23, Jul 2024, 18:41 pm IST
New Delhi: In line with expectations, Finance Minister Nirmala Sitharaman offered a slew of measures and sops for the common people, who had pinned high hopes from the FM.
Standard Deduction in new tax regime has been hiked to Rs 75,000 from Rs 50,000
Deduction on family pension for pensioners has been raised from Rs 15,000 to Rs 25,000. FM said this will provide relief to about four crore salaried individuals and pensioners.
Under the new tax regime FM has tweaked the income tax slab. Under the New Tax Regime, there will be nil tax on Rs 0-3 lakh, 5% tax on income up to Rs 3-7 lakh, 10% tax on income up to Rs 7-10 lakh, 15% tax on income up to Rs 10-12 lakh, 20% tax on income up to Rs 12-15 lakh and 30% tax on income above Rs 15 lakh.
Customs duties on gold and silver reduced to 6 percent and that on platinum to 6.4 percent, making the precious metals more affordable
Non-reporting of small foreign assets has penal consequences under the Black Money Act. Such non-reporting of movable assets up to Rs 20 lakh is proposed to be de-penalised.
Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, FM proposed
FM Sitharaman proposed to thoroughly simplify the provisions for reopening and reassessment. An assessment hereinafter can be reopened beyond three years from the end of the assessment year only if the escaped income is Rs 50 lakh or more, up to a maximum period of five years from the end of the assessment year. Even in search cases, a time limit of six years before the year of search, as against the existing time limit of ten years, is proposed. This will reduce tax-uncertainty and disputes.
FM has announced that NPS-Vatsalya, a plan for contribution by parents and guardians for minors will be started. On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account.
The two tax exemption regimes for charities are proposed to be merged into one. The 5 per cent TDS rate on many payments is being merged into the 2 per cent TDS rate and the 20 per cent TDS rate on repurchaseof units by mutual funds or UTI is being withdrawn. TDS rate on e-commerce operators is proposed to be reduced from one to 0.1 per cent. Moreover, credit of TCS is proposed to be given in the TDS to be deducted on salary.
To improve social security benefits, deduction of expenditure by employers towards NPS is proposed to be increased from 10 to 14 per cent of the employee’s salary. Similarly, deduction of this expenditure up to 14 per cent of salary from the income of employees in private sector, public sector banks and undertakings, opting for the new tax regime, is proposed to be provided.
