Budget 2025: Finance Minister Nirmala Sitharaman will present the budget on 1 February 2025. The general public and salary class have high expectations from this budget. Middle class is expecting that they will get some relief inside the tax in the budget. Standers deduction limit should be increased or 80C limit should be increased. Here it is telling you that in the last budget 2024-25, many big announcements related to income tax were made, which is necessary to know all the taxpayers.
1. Announcement of new tax slab
In the last budget, the government changed the tax slab in the new tax system so that the taxpayers could get relief. The new tax slabs were as follows:
0-3 lakh rupees: 0% tax
3-7 lakh rupees: 5%
7-10 lakh rupees: 10%
10-12 lakh rupees: 15%
12-15 lakh rupees: 20%
15 lakh rupees and above: 30%
Due to these new slabs, taxpayers can save up to Rs 17,500 annually.
2. Increase in standard deduction
The standard deduction limit was increased from Rs 50,000 to Rs 75,000.
The deduction limit for family pensioners was increased from Rs 15,000 to Rs 25,000. This will provide great relief to the employee and retired employees.
3. Deduction in NPS
The deduction limit on the contribution of the employer in the National Pension System (NPS) was increased from 10% to 14%. This step will promote savings in retirement funds.
4. Changes in Capital Gens Tax
The rate of short -term capital gains tax (STCG) was increased from 15% to 20%.
The rate of Long Term Capital Gens Tax (LTCG) was increased from 10% to 12.5%.
The LTCG exemption limit on equity investment was increased from Rs 1 lakh to Rs 1.25 lakh.
The purpose of this change is to encourage investors to invest for a long time.
5. TCS on luxury goods
Tax collection at source (TCS) was implemented on luxury goods worth more than Rs 10 lakh. This rule came into effect from 1 January 2025. Its purpose is to monitor expensive transactions and prevent tax evasion. Through these changes, the government has tried to give relief to taxpayers as well as strengthen the tax collection.