- Increase in Standard Deduction from Rs 50,000 to Rs 75,000 and deduction from family pension from Rs 15,000 to Rs 25,000 for taxpayers in new tax regime from AY 25-26 onwards.
- Increase in LTCG Tax on all listed equity assets from 10% to 12.5%. Exemption Limit increased from Rs 1 Lakh to Rs 1.25 Lakh w.e.f 23-07-2024.
- Decrease in LTCG Tax on listed bonds and debentures from 20% to 12.5%. Unlisted debentures and unlisted bonds will be taxed at slab rates. (w.e.f 23- 07-2024).
- Decrease in LTCG tax on property, gold and other unlisted assets from 20% to 12.5% w.e.f 23-07-2024. However benefit of indexation is proposed to be removed.
- Increase in STCG tax on all STT paid equity securities from 15% to 20% w.e.f. 23-07-2024.
- Change in tax rates slab in new tax regime from AY 25-26 onwards.
- It is proposed that there will only be two holding periods, 12 months and 24 months, for determining whether the capital gains is STCG or LTCG. For all listed securities, the holding period is proposed to be 12 months and for all other assets, it shall be 24 months.
- Rationalization of TDS rates from 5% to 2% for 194D, 194DA, 194G, 194H, 194-IB, 194M and 1% to 0.1% for 1940 w.e.f 1-Oct-2024.
- Angel Tax u/s 56 is proposed to be abolished from 1-Apr-2025.
- It is proposed to omit section 194F relating to TDS on payments on repurchase of units by Mutual Fund or UTI which attracts a TDS rate of 20% w.e.f 1-Oct-24.
- Increase in interest rates from 1% to 1.5% for late payment of TCS from AY 25-26 onwards.
- Increase in limit of remuneration to working partners of a firm allowed as deduction w.e.f AY 25-26.
- New TDS section 194T inserted. 10% TDS on payment of salary, bonus, interest, commission by a Firm to its partners w.e.f 1-Apr-2025.
- It is proposed to increase the STT on sale of an option from 0.0625% to 0.1% of the option premium & on sale of a futures in securities from 0.0125% to 0.02% of price at which futures are traded w.e.f 1-Oct-2024.
- NPS deduction limit increased from 10% to 14% for employers’ contribution in new tax regime w.e.f. AY 25-26 onwards.
