Finance Minister Of India, Nirmala Sitharaman Presented Union Budget Record 7th Time. Here Are 8 Main Points Of Budget 2024, Which Will Affect You.
STCG And LTCG
Short Term Capital Gain Tax or STCG Tax increased to 20% from 15% and Long Term Capital Gain Tax or LTCG increased to 12.5% from 10%.
Long-term capital gain exemption limit will be increased to Rs.1.25 lakh per year from existing 1 lakh.
- LTCG up 25%
- STCG up 33.3%
New Tax Regime
New Tax rate structure in new tax regime to be revised:
- 0-3 L – 0%
- 3-7 L – 5%
- 7-10 L – 10 %
- 10-12 L – 15 %
- 12-15 L – 20%
- Above 15 L – 30%
Standard deduction increased to Rs 75,000 in new tax regime. Deduction of Family Pension increased from ₹15,000 to ₹25,000. Salaried taxpayers can save ₹17,500 in new Tax regime.
F&O
STT on options goes up from 0.062% to 0.1%. STT on futures goes up from 0.0125% to 0.02% from October 1st.
Duty
Import duty for Gold and silver is reduced to 6%. This will help to increase retail demand and stop gold smuggling. Duty exemptions for 25 critical minerals, including lithium, good for electric vehicle batteries.
Custom Duty on Mobile Phones, Chargers and related parts is reduced to 15%.
Indexation
Now, No Indexation Benefit on the sale of Gold, Silver, Property etc other Assets and Now pay 12.5%. This may increase black money, a very bad step by govt.
TDS
New TDS section 194T. 10% TDS on payment of salary, bonus, interest, commission by a Firm to its partners more than ₹20,000, w.e.f 1/4/2025.
Govt Reduced TDS Rates, which are given below:
| Section | Present TDS Rate | Proposed TDS Rate | With effect from |
|---|---|---|---|
| Section 194D – Payment of insurance commission (in case of person other than company) | 5% | 2% | 1.4.2025 |
| Section 194DA – Payment in respect of life insurance policy | 5% | 2% | 1.10.2024 |
| Section 194G – Commission etc on sale of lottery tickets | 5% | 2% | 1.10.2024 |
| Section 194H – Payment of commission or brokerage | 5% | 2% | 1.10.2024 |
| Section 194-IB – Payment of rent by certain individuals or HUF | 5% | 2% | 1.10.2024 |
| Section 194M – Payment of certain sums by certain individuals or Hindu undivided family | 5% | 2% | 1.10.2024 |
| Section 194-O – Payment of certain sums by e-commerce operator to e-commerce participant | 1% | 0.1% | 1.10.2024 |
| Section 194F relating to payments on account of repurchase of units by Mutual Fund or Unit Trust of India | Proposed to be omitted | 1.10.2024 |
Internship
Govt will provide internship opportunities to 1 Crore Youth in top companies over 5 years. Participants in the scheme will receive a monthly internship allowance of Rs 5000 and one-time assistance of Rs 6,000. This will generate skilled workers or employees.
Angel Tax
Angel Tax abolished, Good for startups and investors. This will boost funding to startups.
So, these are the 8 Main Points Of Budget 2024 and highlights.
