Finance Minister Nirmala Sitharaman announced significant relief for new income tax regime subscribers. During her Budget speech, she also mentioned a comprehensive review of the Income Tax Act by the government.
Here are 10 key points from Nirmala Sitharaman’s tax announcements:
1. The government will introduce standard operating procedures for TDS defaults and simplify the compounding of such offences.
2. A comprehensive review of the customs duty structure will be conducted over the next 6 months. The TDS rate on e-commerce will be reduced to 0.1%. Two tax exemption regimes for charities will merge into one, and TDS delays will be decriminalized up to the tax filing date.
3. Over two-thirds of individuals have opted for the new income tax regime.
4. The standard deduction for those in the new regime will increase from ₹50,000 to ₹75,000.
5. Revised tax slabs under the new regime:
- ₹0-₹3 lakh: Nil
- ₹3-7 lakh: 5%
- ₹7-10 lakh: 10%
- ₹10-12 lakh: 15%
- ₹12-15 lakh: 20%
- Above ₹15 lakh: 30%
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6. Salaried employees under the new regime will save up to ₹17,500 annually due to proposed changes.
7. The deduction on family pension for pensioners will be enhanced from ₹15,000 to ₹25,000, benefiting 4 crore salaried individuals and pensioners.
8. The deduction limit for the employer’s contribution to NPS will increase from 10% to 14%, and the 2% equalisation levy will be withdrawn.
9. The monetary limit for filing tax appeals will be increased to ₹60 lakhs for ITAT, ₹2 crore for high courts, and ₹5 crore for the Supreme Court.
10. The Angel tax will be abolished, and the corporate tax rate on foreign companies will be reduced from 40% to 35%.
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