Short-term capital referred to in section 111A (listed equity & Equity oriented units)
15%
20%
Under the head Income from Capital gains:
Example 1 : House sold in FY 24-25 for 1 crore which is acquired in 2001 for 20 Lakh
Particulars
LTCG before 23/7/24 (tax @20%)
LTCG after 23/7/24 (Tax @ 12.5%
Sale consideration
1,00,00,000
1,00,00,000
Less: COA
72,60,000
20,00,000
(20,00,000*363/100)
LTCG
27,40,000
80,00,000
Tax
5,48,000
10,00,000
Excess Taxes
4,52,000
Example 2 : House sold in FY 24-25 for 5 crore which is acquired in 2001 for 20 Lakh
Particulars
LTCG before 23/7/24 (tax @20%)
LTCG after 23/7/24 (Tax @ 12.5%
Sale consideration
5,00,00,000
5,00,00,000
Less: COA
72,60,000
20,00,000
(20,00,000*363/100)
LTCG
4,27,40,000
4,80,00,000
Tax
85,48,000
60,00,000
Benefit Obtained
25,48,000
The exemption under sec 112A for LTCG has been increased from Rs.1,00,000/- to Rs.1,25,000/-
No Indexation benefit is available.
The period of holding for Bonds, Debentures and Gold will reduce from 36 months to 24 months.
For unlisted shares and immovable property the period of holding shall remain 24 months.
6. Standard Deduction has been increased from Rs.50,000/- to Rs.75,000/- in new tax regime.
7. Deduction on family pension for pensioners enhanced from ₹15,000/- to ₹25,000/-
8. With the intent to increase the deduction available to the employee on NPS contributions, the limit of employer’s contribution is now increased from 10% of salary to 14% of salary. Here, salary includes dearness allowance, if the terms of employment so provided, but excludes all other allowances and perquisites
9. The allowable expenditure of remuneration paid to workings partners is amended as follows –
Sl No.
Particulars
Remuneration allowed
1
on the first Rs. 6,00,000 of the book-profit or in case of a loss
Rs. 3,00,000 or at the rate of 90 per cent of the book-profit, whichever is more;
2
on the balance of the book-profit
at the rate of 60 per cent
10. Change in rates of TDS is as mentioned below :
Section
Present TDS Rate
Proposed TDS Rate
With effect from
Section 194DA – Payment in respect of life insurance policy
5%
2%
01-10-2024
Section 194G – Commission etc on sale of lottery tickets
5%
2%
01-10-2024
Section 194H – Payment of commission or brokerage
5%
2%
01-10-2024
Section 194-IB – Payment of rent by certain individuals or HUF
5%
2%
01-10-2024
Section 194M – Payment of certain sums by certain individuals or Hindu undivided family
5%
2%
01-10-2024
Section 194-O – Payment of certain sums by e-commerce operator to e-commerce participant
1%
0.1%
01-10-2024
Section 194F relating to payments on account of repurchase of units by Mutual Fund or Unit Trust of India
Proposed to be omitted
01-10-2024
11. The insertion of new TDS section 194T is inserted to bring payments such as salary, remuneration, commission, bonus and interest to any account (including capital account) of the partner of the firm under the purview of TDS for aggregate amounts more than Rs 20,000 in the financial year. Applicable TDS rate will be 10% and the said provision will be effective 1st day of April, 2025.
12. Non-reporting / failure to disclose the information/incomes from foreign assets located outside India, attracts penal provisions u/s 42 or 43 of the Black Money Act amounting to Rs.10 lakhs earlier. This non-reporting / wrong disclosure of assets up to a value of Rs. 20 lakhs is now condoned with effect from 01.10.2024.
13. Securities Transaction Tax (STT) has been increased from 0.0125% to 0.02% on futures trading, and from 0.0625%to 0.10% in case of options trading.
14. Simplification of Reassessment :
Assessment can now be reopened beyond three years upto five years (earlier 10 years) from the end of Assessment Year only if the escaped income is ₹ 50 lakh or more.
In search cases, time limit reduced from ten to six years before the year of search.
15. Angel tax provisions of Section 56(2)(viib) has been abolished w.e.f 1st day of April, 2025, which means that tax benefit between fair value and actual amount received on issue of shares in case of startup companies will be taxable from 01st April, 2025.
16. Equilization levy of 2% is withdrawn with effect from 01.08.2024 – This relates to levy of tax on any consideration received or receivable by an e-commerce operator from e-commerce supply or services made or provided or facilitated by it.
17. Vivaad se Vishwas Scheme has been proposed to implement to facilitate the settlement of income tax disputes and eliminate litigation.