The Union Budget 2024 has introduced crucial updates to income tax rules. These changes will affect how you file ITR in 2025. Here are the five key updates every taxpayer should note.
1. Lower Tax Rates on High Incomes
The new income tax slabs offer significant savings for higher earners:
Income Range (₹) | Old Tax Rate | New Tax Rate |
Above ₹12,00,000 | 30% | 25% |
This adjustment reduces the tax burden for those earning above ₹12,00,000 annually.
2. Revised Capital Gains Tax Rates
Investors face updated tax rates on short- and long-term capital gains:
Type of Capital Gain | Old Tax Rate | New Tax Rate |
Short-Term (Equity/Mutuals) | 15% | 20% |
Long-Term (All Assets) | 10% | 12.5% |
The exemption limit for LTCG has also increased from ₹1 lakh to ₹1.25 lakh, providing relief to investors.
3. Updated Standard Deductions for Salaried and Pensioners
Category | Old Limit (₹) | New Limit (₹) |
Salaried Individuals | 50,000 | 75,000 |
Family Pensioners | 15,000 | 25,000 |
Higher deductions reduce taxable income, enhancing savings for taxpayers.
Did You Know?
India has some of the lowest long-term capital gains tax rates among major economies, even after recent increases.
Final Word
These tax reforms are designed to simplify compliance and promote savings. Stay informed to make the most of the changes. Start planning your 2025 finances now!