Union Budget 2024: Key tax changes you should know about

On July 23, Finance Minister Nirmala Sitharaman presented the Union Budget 2024, making her the first finance minister to do so seven times in a row. Here we discuss the significant tax changes that were introduced this time.

• Up to Rs 3 lakh:?no tax
• Rs 3 lakh - Rs 7 lakh:?5%
• Rs 7 lakh - Rs 10 lakh:?10%
• Rs 10 lakh - Rs 12 lakh:?15%
• Rs 12 lakh - Rs 15 lakh:?20%
• Above Rs 15 lakh:?30%

• Increase in the standard deduction announced - from Rs 50,000 to Rs 75,000 under the new income tax regime
• The deduction for family pensions will be increased from Rs 15,000 to Rs 25,000??

• 2% TDS is being withdrawn on Mutual Funds??
• The credit of Tax Collected at Source (TCS) to be applied directly to salary
  

Proposed changes include increasing the employer¡¯s deduction for contributions to NPS from 10% to 14% of the employee¡¯s salary.?

Additionally, employees in the private sector, public sector banks, and undertakings who choose the new tax regime will also benefit from a deduction of up to 14% of their salary for NPS contributions.

The Securities Transaction Tax (STT) on Futures contracts will increase to 0.2%, and on Options contracts to 0.1%. Additionally, income from share buybacks will now be taxed in the hands of the recipient.?

The tax deduction for National Pension System (NPS) contributions will be raised from 10% to 14% of salary, benefiting both government employees and those in private companies participating in the NPS.