How can Mool help you navigate the implications of Budget 2024?
Dear reader,
The much-anticipated India Budget 2024 is finally out and there are notable changes from the old tax rates. In this edition of the Mool Mantra newsletter, we deeply dive into Budget 2024 highlights, its implications, and how Mool can help you navigate the challenging tax structures.?
Key Highlights
The Government of India shares that 58% of corporate tax came from simplified tax regime for FY 2022-23 and more than 2/3rd (67%) of the tax filers opted for new personal income tax regimes. Before we highlight Mool’s aid, let’s first look into the key highlights of Budget 2024 and sections that have introduced more taxes.
? The Budget 2024 prioritizes agriculture, employment and skilling, manufacturing and urban development, energy security, infra, R&D, and next-generation reforms.?
? New rates apply and the revised structure is expected to provide potential savings of Rs 17,500 to salaried individuals.
New Tax Rates
? Standard deduction has increased from Rs. 50,000 to Rs. 75,000.
? Capital gain limit is increased to 1.25 Lakh. However, the Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) will now attract tax rates of 20% and 12.5% respectively, a significant increase from the previous rates of 15% (STCG) and 10%(LTCG).?
? Simplified holding periods: For all listed securities, a holding period of 12 months or less is considered short-term while exceeding 12 months is long-term. For other assets, the holding period is 24 months. The indexation for all long-term assets has been removed.
?Unlisted bonds and debentures, debt mutual funds and market-linked debentures, irrespective of the holding period, however, will attract tax on capital gains at slab rates.
? Security Transaction Tax on futures and options of securities is set to increase from 0.02% to 0.1%.
? Deduction of expenditure by employers towards NPS is proposed to be increased from 10% to 14% of the employee’s salary. Parents and guardians can also plan NPS for minors via NPS Vatsalya. The plan can be converted into a normal NPS account upon obtaining maturity.?
领英推荐
? First-time employees are covered under various EPFO schemes for the formal sector. Scheme A to provide first-timers with a direct transfer of one-month salary in 3 installments. The eligibility limit is a salary of 1 Lakh/month. Scheme B aims to incentivize additional employment in the manufacturing sector.?
How does Mool fit in?
The Budget 2024 brought many changes and there’s no confirmation yet if the Old Tax Regime will be scraped. Amidst rising taxes, Mool’s brand promise of salary personalization and tax optimization remains the same. Our core engines under the B2B Vetan offering, free calculators, and other tools on the site are updated and ready to use.
While we have no control over the rising tax rates and increased financial burden, we continue to witness take-home increments with our customers’ employees.?
A snapshot of our comprehensive offering:
? Automated SaaS solution?
? Compliant with state & central tax rules
? Unified dashboards
? Role-based access control
? Add on services like Income Tax Filing?
? Personalized reports for individuals
Startups, SMEs, or Enterprises, Mool has financial solutions for everyone. For more information, contact us at [email protected].
That’s all for this edition. We’ll see you next time.