Union Budget 2024 - Important Changes
Income Tax Slabs
- Standard Deduction increased from 50,000/- to 75,000/- (for Salaried) under New Tax Regime.
- Tweak in Tax slab rates under New Tax Regime.
Tax savings of 17,500/- p.a. @ 30% slab rate.
Taxation Aspects
- Mutual Funds & Equity Shares, where Equity exposure is at least 65%.
- Within 1 year of purchase: Gains will be taxed at 20% (Previously 15%).
- More than 1 year of purchase: Till 1.25 lakhs gains - NIL tax. Above that, gains will be taxed at 12.50% (Previously till 1 lakh gain tax-free & 10% tax beyond that).
Despite this increase, it is negligible in the long-term. Also Equities continue to provide better returns over inflation v/s others.
Ex. S.I.P of 25,000/- for 15 years @ 12% CAGR gives 1.26 crore maturity.
# Capital Gains - 81.14 lakhs
# Tax as per old slab: 8.14 lakhs (11.33% net return)
# Tax as per new slab: 9.98 lakhs (11.15% net return) - Difference of only 0.18% in net return.
2. MFs, where Debt exposure is at least 65%.
- No change - Taxed at slab rates, just like bank / post office deposits.
- Within 2 years of purchase: Taxed at slab rates.
- More than 2 years of purchase: Gains taxed at 12.50%. Indexation benefit (Adjusting the purchase price for inflation) is removed.
Tax-free Employer NPS contribution is now 14% of Basic Salary from 10%.
Click to find out what instruments still remain TAX-FREE!
