Investors: Effective from 23 July 2024:
LTCG on listed equities increased from 10% to 12.5%; LTCG on all other assets reduced from 20% to 12.5%, however indexation benefits removed.
STCG on listed equities increased from 15% to 20%
Holding period reduced to 24 Months for all assets other than listed securities to qualify as long-term
LTCG exemption limit increased from ₹1L to ₹1.25L per year
Angel Tax abolished
Business:
“Dividend” will include any payment by a company on purchase of its own shares from a shareholder (buyback) & get taxed at slab rates
Foreign company tax rate reduced from 40% to 35%.
Higher minimum remuneration payable to partners in a partnership firm
Changes in TDS Rates:
TDS rates reduced from 5% to 2% on commission or brokerage
TDS rates reduced from 5% to 2% for individuals on rental payments when monthly rent exceeds ₹50K and payments to contractors and professionals when the personal expenditure exceeds ₹50L in a year
TDS rate reduced from 1% to 0.1% on e-commerce transactions
New TDS at 10% on salary payments by partnership firm to its partners
Penalty applicable for late filing of TDS/TCS returns even for delay of one month (versus one year previously). Penalty goes up to ₹1L
From October 1, 2024, TCS paid will be credited towards computing TDS on salary income.
Option for lower deduction certificate for TDS on purchase of goods u/s 194Q and TCS on sale of goods u/s 206C, effective October 1, 2024.
Individuals:
Income tax slab under New Regime for Individual/HUF from FY24-25:
Up to ₹3L – Nil
₹3L to ₹7L – 5%
₹7L to ₹10L – 10%
₹10L to ₹12L – 15%
₹12L to ₹15L – 20%
Above ₹15L – 30%
Standard deduction for salary increased from ₹50K to ₹75K
Effective April 1, 2025, transfers of capital assets via gift, will, or irrevocable trust will be tax-free only if conducted by individual or HUF
