For weeks, expectations have been building—tax cuts, exemptions, new policies. Now, it’s time to see what the government has planned and how it will shape the economy.
Tomorrow is Budget Day, and we know you’ll have questions! We’ll be live, sharing budget updates and answering all your tax-related queries here.
The budget was announced today, and there are several key reforms in income tax that will affect individuals. Here’s a breakdown of the major updates:
New Income Tax Bill: A new income-tax bill is in the works to replace the existing Income Tax Act. The aim is to make tax laws clearer and more accessible, reducing the chances of litigation.
Increased Tax Rebate: The income threshold for the rebate has been raised from ₹7 lakhs to ₹12 lakhs. This means individuals earning up to ₹12L will now pay zero taxes.
This rebate is only applicable to income taxed at slab rates, not on special rate income like capital gains.
TDS Updates:
For senior citizens, the threshold for TDS on interest income has doubled, now standing at ₹1 lakh instead of ₹50,000.
The annual TDS limit for rent payments has been increased from ₹2.4 lakh to ₹6 lakh.
TCS Updates:
The threshold for TCS on foreign remittances under the LRS scheme has increased from ₹7 lakh to ₹10 lakh.
TCS will no longer apply on money sent abroad for education if the payment is made via a loan from a specified financial institution.
More Time for Updated Returns: You now have more time to file updated returns — the limit has been extended from 2 years to 4 years.
NSS Exemption for Senior Citizens: Withdrawals from the National Savings Scheme (NSS) will be exempt from tax starting from August 29, 2024.
Stay tuned for more updates, and feel free to drop any questions below!