Stay Tuned for Budget Publication from RMPS & Co.

The Budget for 2024-2025 introduced several key changes to tax rates across different sectors. Here are the major tax rate changes:

Personal Income Tax

New Tax Regime Slabs and Rates: The budget proposed revised tax slabs under the new tax regime to provide relief to taxpayers and encourage higher compliance.

o 0-3 lakh: Nil

o 3-7 lakh: 5%

o 7-10 lakh: 10%

o 10-12 lakh: 15%

o 12-15 lakh: 20%

o Above 15 lakh: 30%

Standard Deduction Increase: For salaried employees and pensioners opting for the new tax regime, the standard deduction is increased from ?50,000 to ?75,000.

Corporate Tax

Incentives for Start-ups: Abolition of the so-called "angel tax" to boost investments into start-ups.

Tax Rate for Foreign Companies: The proposal includes reducing the corporate tax rate for foreign companies from 40% to 35%, which is aimed at attracting more foreign investment.

Capital Gains Tax

Simplification of Rates: The budget proposes simplifying capital gains tax with differentiated rates for short-term and long-term gains, making it more favorable for investors.

Customs Duty

Critical Minerals: Full exemption from customs duties for 25 critical minerals to boost domestic manufacturing.

Electronics: Reduction in the Basic Customs Duty (BCD) on certain electronics to promote local manufacturing.

Healthcare: Full exemption for additional cancer drugs from customs duties to make healthcare more affordable.

Goods and Services Tax (GST): While the budget speech may not have detailed changes in GST rates, any adjustments typically occur through the GST council meetings with implications discussed during the budget presentation.

Stay Tuned for Budget Publication from RMPS & Co.

Regards,

Rajnikant Patel