Tax Planning for Individuals

INCOME TAX PLANNING FOR FY 2024-25

CONTAINS 5 PARTS
PART I : HIGHLIGHTS OF CHANGES IN TAX RULES FOR FY 2024-25 : READ THIS PART BELOW
PART 2 : TAX RATES / SLABS FOR FY 2024-25 CLICK HERE
PART 3 : TAX REBATES FOR FY 24-25 CLICK HERE
PART 4: INCOME TAX CALCULATOR FOR FY 2024-25 CLICK HERE
​PART 5 : TAX ON RETIREMENT BENEFITS CLICK HERE
​FOR THE LATEST INCOME TAX NEWS CLICK HERE
HOW TO PAY INCOME TAX ONLINE ? CLICK HERE
READ OUR ARTICLE ” TDS ON SALARY , PENSION AND PERQUISITES ”
​Read our article ” CRYPTOCURRENCY TAXES IN INDIA ” by clicking Here

PART I : HIGHLIGHTS OF CHANGES IN TAX RULES FOR FY 2024-25 : READ THIS PART BELOW

HIGHLIGHT OF BUDGET 2024 : NO CHANGE IN DIRECT OR INDIRECT TAXES

DIRECT TAX PROPOSALS :

• Short term gains of financial assets to attract 20% tax rate

• Long term gains on all financial an non-financial assets to attract a tax rate of 12.5%

• Increase in limit of exemption of capital gains on financial assets to ₹1.25 lakh per year ,

• Abolish ANGEL tax for all classes of investors.

• Simpler tax regime to operate domestic cruise

• Provide for safe harbour rates for foreign mining companies (Selling raw diamonds)

• Corporate tax rate on foreign companies reduced from 40% to 35% .

Listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term .

Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates.

New Tax Regime :

Standard Deduction for salaried employees increased from ₹50,000 to ₹75,000

Deduction on family pension for pensioners increased from ₹15,000 to ₹25,000

NEW TAX REGIME TAX RATES REVISED AS FOLLOWS :

1. Up to Rs 3.00 lakhs income : NIL

2. Rs 3.00 lakhs to 7.00 lakhs income : 5 % tax

3 . Rs 7.00 lakhs to 10.00 lakhs income : 10 % tax

4 . Rs 10.00 lakhs to 12.00 lakhs income : 15 % tax

5 . Rs 12.00 lakhs to 15.00 lakhs income : 20 % tax

6. Above Rs 15 lakhs income : 30 % tax

To read FM’S BUDGET SPEECH , CLICK HERE

UPDATE DATD 07.08.2024 : CHOICE TO BE GIVEN ON LTCG

Finance Minister had proposed , in her budget speech , LTCG tax at rate of 12.5 per cent on all financial and non-financial assets . Presently LTCG TAX on house properties is at 20 % with indexation benefits .

Now FM has proposed an amendment to the budget and the amendment to the budget offers an option to chose between the old regime and the new proposal and one can chose whichever offers a lower tax for the house properties purchased before 23.07.2024

THIS ARTICLE CARRIES INFORMATION ON VARIOUS TAX PROVISIONS WHICH ARE GENERALLY USEFUL . YET IT DOES NOT CARRY ALL THE PROVISIONS AND HENCE YOU ARE ADVISED TO GO THROUGH INCOME TAX DEPARTMENT WEBSITES FOR AUTHENTIC COMPLETE INFORMATION , ESPECIALLY FOR THOSE WHO HAVE GOT MULTIPLE STREAMS OF INCOME OR COMPLEX INVESTMENTS . YOU MAY ALSO CONSULT A QUALIFIED TAX CONSULTANT / CHARTERED ACCOUNTANT FOR ANY CLARIFICATION. READERS ARE ALSO WELCOME TO SEND FEEDBACK , FORM AVAILABLE BELOW . WE ARE OPEN FOR CORRECTION IF NEEDED