Here are the highlights of Part B of of Honorable Finance Minister’s speech of Budget 2024
I. Direct Tax:
A. General
1. Rationalise and simplify direct taxes appreciated by taxpayers
2. 66% using simplified new tax regime
3. Comprehensive review of Income Tax Act to reduce disputes in Income Tax
4. Simplification for charities and TDS-
5. TDS- 5% reduced to 2%
6. TDS rates on ECO reduced from 1% to 0.1%
7. Decriminalise tds paid upto due date of filing tax statements
8. Rationalising and simplifying tds defaults
9. Simplification of re-opening or reassessment – if income escaped> 50 lakhs , 5 years limit instead of 3
10. Search procedure simplified
11. Capital gains – short term capital gains shall attract 20% and other STCG same rate
12. LTCG -12.5% instead for Financial assets
13. Limit of exemption of Capital Gains is 1.25 Lakhs
14. Safe Harbour Rules and TP assessment simplified
15. Angel tax withdrawn
16. Simpler tax regime for foreign shipping company promoting domestic tourism
17. Safe harbour rates for foreign mining company to sell diamonds in India
18. Foreign company tax rates from 40 to 35%
19. Security transaction tax on F&O increased to 0.2 and 0.1%
20. Buyback of shares taxed on recipients
21. NPS employer contribution and employees contribution increased from 10 to 14%
22. Non reporting of foreign assets upto 20L depenalised
23. Equalisation levy withdrawn
24. Immunity from penalty and punishment for benamidar
B.Personal Income Tax
1. Standard deduction increased from 50K to 75K
2. Family pension limit 15K to 25K
3. New tax regime structure
0-3 L nil 3 Lakhs-7 Lakhs -5% 7 Lakhs-10 Lakhs 10% 10 Lakhs -12 Lakhs 15% , 12 Lakhs -15Lakhs -20% and Above 15Lakhs- 30%
II.GST
1. Rationalised tax structure and expand to remaining sectors
III Customs Duty
1. Customs duty to promote local manufacturing, indigeniousation and reduction in rates of imports to rationalise and simplify taxes for ease of doing business
2. Medicine and medical equipments to provide relief for cancer equipments- exempt customs duty
3. X ray tubes and flat panel detectors – Reduced rates
4. Mobile phone- decrease in customs duty
5. Critical 25 minerals such as copper, lithium, cobalt, etc to exempt customs duty or reduced Basic customs duty duty
6. Solar energy – list of exempt capital goods for solar has reduced
7. Marine- reduction of customs duty for shrimp and fish feed
8. Leather and textile sector -reduction in customs duty
9. Precious metals- reduction of customs duty for gold, silver and platinum for the same
10. Electronics – reduction of BCD for nonoxidised copper
11. Plastics- PVC flex bands rate are increased
12. Telecommunication equipments- increased customs duty
13. Trade faciliation- promote domestic aviation and ships maintenance and operations – propose to extend period for export for repairs from 6 months to 1 year. Reimport of goods from 3- 5 years
*IV. General*
1. All taxpayer services are digitalised
2. Faster disposal of appeals in first appeals
3. New vivaad se viswas schemes
4. Limit increased for filing appeals
What is cheaper and what is costlier in 2024 budget?
You can view the details budget highlights in this pdf document at this link.
