Budget 2025 : Finance Minister Nirmala Sitharaman will present the budget on February 1, 2025. The general public and the salaried class have high expectations from this budget. The middle class is hoping that they will get some relief in taxes in the budget.
Whether the limit of standard deduction is increased or the limit of 80C is increased. Here we are telling you that in the last budget 2024-25, the government had made many big announcements related to income tax, which is important for all taxpayers to know.
1. Announcement of new tax slab
In the last budget, the government changed the tax slabs in the new tax system to provide relief to taxpayers. The new tax slabs were as follows:
- Rs 0-3 lakh: 0% tax
- Rs 3-7 lakh: 5%
- Rs 7-10 lakh: 10%
- Rs 10-12 lakh: 15%
- Rs 12-15 lakh: 20%
- Rs 15 lakh and above: 30%
Due to these new slabs, taxpayers can save up to Rs 17,500 annually.
2. Increase in standard deduction
The limit of standard deduction has been increased from Rs 50,000 to Rs 75,000.
The deduction limit for family pensioners has been increased from Rs 15,000 to Rs 25,000. This will provide huge tax relief to salaried and retired employees.
3. Deduction in NPS
The deduction limit on employer’s contribution to the National Pension System (NPS) has been increased from 10% to 14%. This move will promote savings in retirement funds.
4. Changes in capital gains tax
Short Term Capital Gains Tax (STCG) rate increased from 15% to 20%.
The rate of Long Term Capital Gains Tax (LTCG) was increased from 10% to 12.5%.
LTCG exemption limit on equity investments increased from Rs 1 lakh to Rs 1.25 lakh.
The purpose of this change is to encourage investors to invest for a long time.
5. TCS on luxury goods
Tax Collection at Source (TCS) was implemented on luxury goods worth more than Rs 10 lakh. This rule came into effect from January 1, 2025. Its purpose is to keep an eye on expensive transactions and prevent tax evasion. Through these changes, the government has tried to give relief to taxpayers as well as strengthen tax collection.
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