BizLaws – Research Stay Updated..... UNION BUDGET OF INDIA 2024 (Direct Tax Proposals) Crafted by: Amit Kumar Agrawal (B.Com, FCA, LL.B.) Ritik Aggarwal (B.Com, ACA) BizLaws Research Institute DIRECT TAX >> For Individual/HUF EXISTING (New Regime) Tax Slab Tax Rate Upto INR 3 lakhs Exempt INR 3 lakhs - INR 6 lakhs 5% INR 6 lakhs – INR 9 lakhs 10% INR 9 lakhs – INR 12 lakhs 15% INR 12 lakhs – INR 15 lakhs 20% Above INR 15 lakhs 30% PROPOSED (New Regime) Tax Slab Tax Rate Upto INR 3 lakhs Exempt INR 3 lakhs – INR 7 lakhs 5% INR 7 lakhs – INR 10 lakhs 10% INR 10 lakhs – INR 12 lakhs 15% INR 12 lakhs – INR 15 lakhs 20% Above INR 15 lakhs 30% DIRECT TAX >> For Individual/HUF ✓ There is no change in old tax regime slabs ✓ Increase in standard deduction for salaries Individual from INR 50,000 to INR 75,000 ✓ Increase in deduction from family pension under other sources from INR 15,000 to INR 25,000 ✓ The limit of contribution by private employer to NPS allowed as deduction is increased from 10% to 14% of salary in case of opting of new tax regime. DIRECT TAX >> For Corporates • It is proposed to abolish angel tax (Tax on premium received on issue of shares) provisions in Income Tax Act 1961 It is a welcome move, it will avoid future litigations and give boost to start up funding Angel tax scrapped • Tax exemption on consideration received from Buy Back of shares is now withdrawn and therefore it will be tax able in the hands of shareholder Buy Back of Shares • Gifts by Individual/HUF will only be excluded from the scope of capital gains tax applicability Corporate Gifting will be considered as Transfer DIRECT TAX >> Some thing Important • To settle litigations, the government has announced this scheme to settle case s pending in litigation at CIT, ITAT and court level Vivad se Viswas Scheme 2024 • Notice for selection of case for scrutiny can be issued only till: • 3 Years from the end of relevant assessment year (Income escaped < 50 Lakhs) • 5 Years from the end of relevant assessment year (Income escaped => 50 Lakhs) Time limit for selection of cases for scrutiny • For LTCG, period of Holding ALL LISTED SECURITIES > 12 months (LTCG - 12 5 % , STCG - 20 % ) • For LTCG, period of Holding OTHER ASSETS > 24 months (LTCG - 12.5%, STCG - Normal rates) Exemption of LTCG u/s 112A increased from INR 1,00,000 to INR 1,25,000 • INDEXATION SYSTEM ABOLISHED Changes in Capital Gains System DIRECT TAX >> Day to Day Compliances CHANGE IN TDS RATES • Payment of commission or brokerage ( 194 H) – 2 % • Payment of rent by certain individuals or HUF ( 194 IA) – 2 % NEW TDS PROVISIONS • TDS on payment of salary, remuneration, interest, bonus or commission by partnership firm to its Partners (Section 194 T) • TDS to be deducted @ 10 % if payment exceeds INR 20 , 000 during the financial year • Lower Deduction Certificate can be availed in case of TDS u/s 194 Q and TCS u/s 206 C( 1 H) INTEREST RATE ON TCS • Interest for delayed payment of TCS to Government is proposed to be increased from 1 % to 1 5 % for every month or part thereof About BizLaws BizLaws Research Institute is a social service venture of BizLaws Advisors which is running itself with a mission to provide accurate information about business laws, regulations and other regulations on the basis of its research BizLaws Research Institute is also engaged in providing regular updates, training sessions and other support on the matters related to business - government relations We have a dedicated team of professionals engaged in doing research on the government steps impacting businesses Connect with us: www.bizlaws i n Contact: 011 - 45574142 +91 - 9711544142 You can ask your queries at: connect @ bizlaws in