There has been a huge increase in the number of ITR filers in India. The year 2024 is coming to an end. Now in the new year, there have been major changes in many rules related to ITR filing.
They have been implemented from the financial year 2024-25. These changes came under the budget presented in July 2024. These changes will also affect ITR (Income Tax Return) filing in 2025. Let us know about these 6 important changes of 2024…
New Tax Slabs
The government has made changes in the tax slabs under the new tax regime. Under this, taxpayers will now get a chance to save more tax. These changes can lead to savings of up to ₹17,500 in income tax.
Standard deduction limit increased
Under the new tax regime, the standard deduction limit has been increased to ₹ 75,000. Earlier it was ₹ 50,000. Whereas, for family pensioners it has been increased from ₹ 25,000 to ₹ 15,000. If you choose the old tax regime then there is no change in it.
More discussion on NPS
In the new tax regime, the deduction limit for employee’s contribution to NPS (National Pension System) has been increased. Now this deduction has increased from 10% to 14%.
Changes in LTCG and STCG tax rates
The central government has changed the tax rates on LTCG (long-term capital gains) and STCG (short-term capital gains). STCG on equity and mutual funds will now be taxed at 20%. It was 15% earlier. LTCG will now be taxed at 12.5%. It was different for different assets earlier. Tax exemption will be available on income up to ₹ 1.25 lakh of LTCG on equity and equity mutual funds. It was ₹ 1 lakh earlier.
Change in holding period for capital gains tax
Now, a holding period of 12 months will be necessary for all listed securities like shares, mutual funds to be considered as LTCG. For non-listed securities, this holding period will be 24 months.
Relief in TDS from salary
Now before TDS is deducted from salary, if there is TDS or TCS from any other income like interest, rent etc., it can be claimed against the TDS deducted from salary. This means that less tax will be deducted from salary. This will improve your cash flow.
