![Budgets 2024-25: Key benefits Finance Minister Nirmala Sitharaman announced Budgets 2024-25: Key benefits Finance Minister Nirmala Sitharaman announced](https://www.indiablooms.com/finance_pic/2024/5fa53cd2c6640c277ff29dbaeea95c69.jpg)
Budgets 2024-25: Key benefits Finance Minister Nirmala Sitharaman announced
New Delhi: Union Finance Minister Nirmala Sitharaman on Tuesday announced some key benefits for people in Budget 2024-25.
Finance Minister Nirmala Sitharaman has changed the Income Tax slabs, providing relief to taxpayers. Standard Deduction for salaried employees has been increased from Rs 50,000 to Rs 75,000.
Deduction on family pension to be enhanced from Rs 15,000 to Rs 25,000 under the new tax regime (NTR), providing relief to about 4 crore pensioners and individuals.
The deduction on the employer's contribution to the National Pension System (NPS) account has been raised from 10% to 14%, aligning it with the benefit given to government employees under the new tax regime (NTR).
The finance minister increased the exemption on long-term capital gains from equity investments to Rs 1.25 lakh, up by Rs 25,000. "Short term gains on certain financial assets shall henceforth attract a tax rate of 20%, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate," Nirmala Sitharaman said.
Further, in the Budget, the holding period required to determine whether capital gains are short-term or long-term for taxation purposes has been simplified. The proposal suggests having only two holding periods, 12 months and 24 months, for classifying capital gains as short-term or long-term.
For all listed securities, including units of listed business trusts, the holding period is proposed to be 12 months.
For all other assets, the holding period will be 24 months. This includes a reduction of the holding period for bonds, debentures, gold, etc., from 36 months to 24 months. The holding period for unlisted shares and immovable property will remain at 24 months.
In Budget 2024, Finance Minister Nirmala Sitharaman reduced the long-term capital gains (LTCG) tax rate on property sales from 20% to 12.5%. However, the indexation benefit has been eliminated from the calculation of long-term gains on property sales. "Short term gains on certain financial assets shall henceforth attract a tax rate of 20%, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate," Nirmala Sitharaman said.
The Budget introduced NPS Scheme for minors. The scheme allows parents and guardians to start pension planning for their children by making contributions that grow until the child turns 18. At that point, the accumulated funds will be moved to a regular NPS account. While unveiling the new plan that would ensure long-term financial security for children, the Finance Minister said, “On attaining the age of majority, the plan can be converted seamlessly into a non-NPS plan.”
The time limit for re-assessment of old income tax returns has been shortened. "Time limit for reassessment is proposed to be reduced from ten years to five years. Further, there are proposals to rationalise the procedure for reassessment. Further, it is proposed to omit reference to Principal Chief Commissioner or Chief Commissioner in section 275 to provide clarity of time limitation for imposition of penalties. It is also proposed to withhold refund up to sixty days of assessment under section 245 and to rationalise time limit to file appeal to ITAT under section 253," said Finance Minister Nirmala Sitharaman in the Budget speech 2024.
The Tax Collected at Source (TCS) paid on foreign remittances and travels can now be used to lower the Tax Deducted at Source (TDS) on salary. The increase in TCS rates from 5 percent to 20 percent, effective October 1, 2023, is expected to impact those using travel agents for foreign tours exceeding Rs 7 lakh and individuals investing abroad.
The customs duty on gold and silver has been reduced, making their purchase more affordable. Gold and silver prices are expected to drop following the Union Finance Minister Nirmala Sitharaman's announcement to reduce customs duties on these metals from 15% to 6% in the Union Budget presentation on Tuesday. Customs duty on platinum has been also reduced to 6.4%.
"To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent," said Union finance minister Nirmala Sitharaman in her budget speech on Tuesday.
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