Yesterday, Finance Minister Nirmala Sitharaman announced the new Budget 2024. With this, came new changes to the income tax rates in the New Tax Regime (NTR). With this new change, the standard deductions have increased from the current Rs 50,000 to Rs 75,000.
Further, the salaried taxpayers who have an income above Rs 15 lakhs will have a benefit of up to Rs 17,500. This will come as a result of the accumulation of tax savings across various income slabs, in addition to standard deduction. This leads to an overall increase in savings.
Further, the Finance Minister also proposed an increase in the monetary threshold for filing appeals related to direct tax, excise, and service tax in tribunals, high courts, and the Supreme Court to Rs 60 lakh, Rs 2 crore, and Rs 5 crore, respectively.
Capital Gains Taxation has been simplified
As announced yesterday, taxation on capital gains has been simplified. This is because of the introduction of a uniform 20% rate on short-term capital gains. However, the existing rates will continue to apply to other financial and non-financial assets.
She further said, on the other hand, a 12.5% tax rate will be applied to long-term gains on all financial and non-financial assets. To benefit the lower and middle-income groups, I propose increasing the capital gains exemption limit to ₹1.25 lakh per year for certain financial assets.
How to calculate Income Tax in the New Tax Regime?
Here’s how you can calculate your tax under the new tax regime after Budget 2024:
- Visit the Income Tax e-Filing Portal.
- Select the income and tax calculator from the quick links.
- Find the income and tax calculator page.
- Choose between: Basic Calculator and Advanced Calculator.
- Enter the necessary details.
- Make sure that you compare the New Tax Regime and the Old Tax Regime.
- You can then see how much tax you owe in each category.
- You will be able to see how much tax you need to pay on your salary.
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