Budget 2024: These 22 Proposals Will Benefit Taxpayers in India

Finance Minister Nirmala Sitharaman on Tuesday presented her seventh Budget in a row — Union Budget 2024-25. Though there are measures like no indexation on property & gold sales and higher LTCG on listed equities that have disappointed markets, the finance minister also announced a number of measures that will benefit taxpayers. Here are 22 proposals that are positive for taxpayers.

1. Comprehensive Review of the Income Tax Act: A six-month review is set to make the Income Tax Act more concise, lucid, and user-friendly, which will be beneficial for all taxpayers.
2. Increased Standard Deduction, Income Tax Slab Changes: The standard deduction under the new tax regime has been increased to Rs 75,000, from Rs 50,000 earlier. Also, income tax slabs have also been revised. Salaried employees under new tax regime will save up to Rs 17,500 annually in taxes due to changes proposed in the FY25 Budget.
3. Simplified Charitable Tax Exemption: The budget proposes merging the existing two tax exemption regimes for charities into one, simplifying the process and making it easier for charitable organizations to benefit.
4. Increased Standard Deduction for Pensioners: The standard deduction for pensioners has been raised from Rs 15,000 to Rs 25,000, providing additional tax relief to senior citizens.
5. Exemption from Angel Tax: Start-up founders and angel investors can now rejoice as the budget removes the contentious angel tax, reducing undue harassment and fostering a more vibrant start-up ecosystem.
6. Cheaper Imported Phones: A reduction in customs duty on mobile phones from 20% to 15% is set to make high-end imported phones, such as the Google Pixel and iPhone Pro, more affordable, saving consumers between Rs 7,000 to Rs 15,000.
7. Duty Cut on Gold and Silver: The customs duty on gold and silver has been reduced, making gold cheaper by Rs 5,900 per kg and silver by Rs 7,600 per kg, benefitting both investors and consumers.
8. LTCG Holding Period on Gold, Bonds Reduced: The minimum holding period to qualify as long-term capital gains for assets like golds and bonds has been reduced from 36 months to 24 months
9. LTCG Exemption Limit Increased: The limit of exsisting LTCG has been increased to Rs 1.25 lakh, against Rs 1 lakh earlier.
10. Scrapping the 2% Equalisation Levy: The elimination of this levy is expected to improve compliance and ease the strained trade relations between India and the US.
11. Lower LTCG on Unlisted Securities: The capital gains tax on unlisted securities has been reduced from 20% to 12.5%, despite the removal of indexation benefits. This change benefits investors and private equity firms by enhancing net returns.
12. Exemption from Angel Tax: Start-up founders and angel investors can now rejoice as the budget removes the contentious angel tax, reducing undue harassment and fostering a more vibrant start-up ecosystem.
13. Vivad se Vishwas Scheme for Conflict Resolution: The introduction of a new scheme under Vivad se Vishwas aims to streamline and reduce litigation, providing a faster resolution mechanism for tax disputes.
14. Direct Benefit Transfer for First-time Employees: A one-month salary direct benefit transfer to first-time employees earning up to Rs 15,000 will benefit approximately 3 million employees, providing immediate financial support.
15. Lower TDS on Commission and Rent: The rate of tax deducted at source on commission and rent has been reduced from 5% to 2%, easing the cash flow for individuals and businesses.
16. Higher Monetary Limits for Tax Appeals: The monetary limit for filing appeals by the tax department has been increased to Rs 60 lakhs for ITAT, with corresponding increases for High Court and Supreme Court appeals, reducing the number of small value disputes.
17. Tax Credit for Investments in Children’s Names: Parents investing in their children’s names can now claim tax credit for any Tax Collected at Source (TCS) on these investments, making it more appealing to secure their children’s future.
18. Relief for Owners of Foreign Assets: Taxpayers with undisclosed foreign assets valued up to Rs 20 lakh will now face no penalty, easing the compliance burden for many and encouraging voluntary disclosure.
19. Encouragement for Women Property Buyers: The budget has proposed that states should offer stamp duty rebates for women property buyers, potentially lowering their costs and promoting gender equality in property ownership.
20. Reduced TDS for E-Commerce Sellers: The tax deducted at source for e-commerce transactions has been slashed from 1% to 0.1%, offering significant relief to sellers on platforms like Amazon and Flipkart.
21. Boost for Real Estate Investment Trusts (REITs): The holding period for REITs to qualify as long-term capital assets has been reduced from 36 months to 12 months, likely increasing their attractiveness to investors.
22. Three Cancer Drugs Now Tax-Free: Budget 2024 has made 3 more cancer drugs tax-exempt.