Budget Update
1. *Standard Deduction for Salaried Employees:
– Increased from Rs 50,000 to Rs 75,000.
– This will result in savings of Rs 17,500 in income tax for salaried employees.
2. Capital Gains Tax:
– *Long-Term Capital Gains (LTCG)* tax rate increased from 10% to 12.5%.
– Listed financial assets held for more than a year will now be classified as long term.
3. Short-Term Capital Gains (STCG) on Financial Assets:
– STCG on certain financial assets set at 20%.
– For other assets, the applicable tax rate applies. 4. *Securities Transaction Tax (STT) on Futures and Options (F&O):*
– Increased to 0.02% and 0.1%.
5. Corporate Tax for Foreign Companies:– Reduced to 25%.
6. Startups: Angel tax abolished, providing relief to startups.
7. TDS Rate for E-commerce Operators
– Reduced to 0.1% from 1%.
New Regime Tax to be made default
Tax slab for new regime
0-3 lakh 0% tax
3-7 lakh 5% tax
7-10 lakh 10% tax
10-12 lakh 15% tax
12-15 lakh 20% tax
15 lakh and above 30% tax
