Income Tax Changes in 2024: Many changes were made in the income tax rules in 2024, including changes from Vivaad se Vishwas Scheme to tax slabs.
Income Tax Changes in 2024: Many important changes were made in the income tax law in the year 2024. In this way, the pattern of filing ITR in the year 2025 has also changed. Today in this news, we are going to tell you about 10 major changes in the income tax law so that you do not have to face any problem while filing income tax returns in future.
Change in income tax slab
In Budget 2024, Finance Minister Nirmala Sitharaman announced changes in the income tax slab. Under the new tax regime, 5 percent tax will be levied on income of Rs 3 lakh to Rs 7 lakh annually. At the same time, 10 percent tax will be levied on income of Rs 7 to 10 lakh and 15 percent tax will be levied on income of Rs 10 to 12 lakh. Apart from this, 20 percent tax will be levied on income between Rs 12 to 15 lakh and 30 percent tax will be levied on income above Rs 15 lakh. Taking advantage of this change, salaried employees will be able to save income tax up to Rs 17,500 annually.
Standard deduction limit increased
Under the new tax system, the standard deduction amount has been increased from Rs 50,000 to Rs 75000. The exemption on family pension has been increased from Rs 15000 to Rs 25000 annually. In the old system, the limit of standard deduction was Rs 50,000 for salaried employees and the deduction on family pension for pensioners was increased from Rs 15,000 to Rs 25,000. The increase in standard deduction in the new tax system will enable salaried persons and pensioners to save more tax.
NPS contribution limit increased
It was decided to increase the limit of NPS contribution for private sector employers from 10 per cent of the employee’s basic salary to 14 per cent. Now when employers contribute more, the pension of the employees will also increase. However, if an employer’s contribution to NPS, EPF and super annuation fund is more than Rs 7.5 lakh in a financial year, it will come under the purview of tax.
Tax on capital gains made easy
Short-term capital gains (STCG) tax on equity FOF (Fund of Funds) has now been increased from 15 to 20 per cent, while long-term capital gains tax (LTCG) on all types of assets, financial and non-financial, has been increased from 10 to 12.5 per cent. There will be no tax on capital gains up to Rs 1.25 lakh in a year in equity mutual fund schemes.
Rational TDS rates
Changes were also made in the TDS rates in the Union Budget 2024. In this, TDS rates for various categories were reduced from 5 per cent to 2 per cent. In this, the TDS rate on e-commerce operators was reduced from 1 per cent to 0.1 per cent, it was decided to deduct 2 per cent TDS on payment of insurance commission and 2 TDS on rent payment.
Claim of TDS and TCS credit against salary
Under this, the employee can reduce the tax deducted from the salary. For this, he can reduce the tax deduction on salary by filling the Central Board of Direct Taxes (CBDT) Form 12BAA and giving information to the employer about the tax deducted from other sources of income or tax paid while spending.
TDS on sale of property
Under this, on sale of residential property worth more than Rs 50 lakh, one percent TDS will be applicable on the sale price or stamp duty, whichever is higher.
Vivaad se Vishwas Scheme
The government launched Vivaad se Vishwas Scheme 2.0 to settle old income tax disputes of taxpayers. Under this, pending direct tax cases can be settled in front of the court. In this, taxpayers can end their dispute by paying the disputed tax amount and the tax imposed in the prescribed percentage.
Aadhaar card is mandatory for these works
Under the new income tax rules, Aadhaar number will be required while filing income tax return or applying for PAN card. Without this you will not be able to do these works.
Time limit for ITR reassessment reduced
Finance Minister Nirmala Sitharaman reduced the time limit for reopening old income tax returns for reassessment from 6 years to 3 years.
