New Delhi, July 23, 2024 – In today’s Union Budget 2024-25, Finance Minister Nirmala Sitharaman announced several significant changes aimed at increasing revenue and streamlining the tax structure. The Long-Term Capital Gains (LTCG) tax rate has been increased from 10% to 12.5% on all financial and non-financial assets, and the exemption limit for LTCG has been raised to ₹1.25 lakh from ₹1 lakh in certain cases. The Short-Term Capital Gains (STCG) tax rate on certain financial securities has been increased from 15% to 20%. Additionally, the Securities Transaction Tax (STT) on futures and options (F&O) trades has been increased to 0.02% and 0.01%, respectively. These changes are part of a broader effort to increase revenue and simplify the tax structure.
New income tax slabs were also announced, with the new regime setting rates as follows: up to ₹3,00,000: nil; ₹3,00,001 to ₹7,00,000: 5%; ₹7,00,001 to ₹10,00,000: 10%; ₹10,00,001 to ₹12,00,000: 15%; ₹12,00,001 to ₹15,00,000: 20%; and above ₹15,00,000: 30%. Key changes include an increase in the standard deduction from ₹50,000 to ₹75,000 for salaried individuals and pensioners, an increase in the standard deduction for family pensioners from ₹15,000 to ₹25,000, and a rise in the deduction on the employer’s contribution to the National Pension System (NPS) for private sector employees from 10% to 14%. These measures aim to provide more relief to taxpayers and simplify the tax structure.