Budget 2024: From Latest Tax Rates In New Tax Regime, Standard Deduction To TDS --New Rules Are Coming Into Effect From THESE Dates

Finance Minister Nirmala Sitharaman has suggested several changes to income tax in Budget 2024. These modifications will take effect on different dates. The changes suggested, however, will take effect after the Finance bill is approved by parliament. Let's examine the various income tax adjustments suggested to go into effect in Budget 2024.

A reduction of the income tax slabs in the new tax regime for the current FY 2024–2025 was made in Budget 2024. The new tax regime's income tax slabs will go into effect on April 1, 2024, following the budget's passage through Parliament and approval by the president.

An announcement to increase the standard deduction amount under the new tax regime and the standard deduction limit for family pensioners was made in the Budget 2024. Changes will become operative on April 1, 2025, following the parliament's passage of the Finance law. The rates will then be effective beginning with the assessment year 2025–2026.

In Budget 2024, the finance minister has suggested several modifications to the capital gains taxation regime. It is suggested that these changes take effect on July 23, 2024.

It is suggested that the TDS rates be lowered to facilitate commercial transactions and encourage better taxpayer compliance. On October 1, 2024, the proposed change will go into force.

The budget specifies that the minor's TCS credits may be modified based on the parent's tax liability. The modification will go into effect on January 1st, 2025.

The securities transaction tax (STT) on futures & options (F&O) of securities has been raised under the 2024 budget. It is suggested that this modification take effect on October 1, 2024.

The Finance Minister made proposals about income from letting out of residential property during her budget statement. With effect from April 1, 2025, this change will apply to the assessment year 2025–2026 as well as any subsequent assessment years.

To prevent PAN misuse and duplication, Budget 2024 has proposed to remove the rules that permit quoting the Aadhaar Enrolment ID in place of the Aadhaar number, Aadhaar in ITR, and Aadhaar in PAN applications starting on this date. The effective date of this amendment is October 1, 2024.

Investing in luxury goods like Gucci purses, Birkin bags, and the like will attract TCS beginning in the next year. The suggested modification will go into effect on January 1, 2025.

In Budget 2024, the Finance Minister has suggested changes in the TDS on the sale of immovable property. The changes will become operative on October 1, 2024.

The private sector employer's NPS contribution cap has increased. The deduction cap has been increased for employees in the public and private sectors. On April 1, 2024, this proposed amendment will go into force.