For weeks, expectations have been building—tax cuts, exemptions, new policies. Now, it’s time to see what the government has planned and how it will shape the economy.
Tomorrow is Budget Day, and we know you’ll have questions! We’ll be live, sharing budget updates and answering all your tax-related queries here.
Ask us anything, lets discuss.
The budget was announced today, and there are several key reforms in income tax that will affect individuals. Here’s a breakdown of the major updates:
New Income Tax Bill: A new income-tax bill is in the works to replace the existing Income Tax Act. The aim is to make tax laws clearer and more accessible, reducing the chances of litigation.
Revised tax slabs
Increased Tax Rebate: The income threshold for the rebate has been raised from ₹7 lakhs to ₹12 lakhs. This means individuals earning up to ₹12L will now pay zero taxes.
This rebate is only applicable to income taxed at slab rates, not on special rate income like capital gains.
TDS Updates:
The threshold for TCS on foreign remittances under the LRS scheme has increased from ₹7 lakh to ₹10 lakh.
TCS will no longer apply on money sent abroad for education if the payment is made via a loan from a specified financial institution.
More Time for Updated Returns: You now have more time to file updated returns — the limit has been extended from 2 years to 4 years.
NSS Exemption for Senior Citizens: Withdrawals from the National Savings Scheme (NSS) will be exempt from tax starting from August 29, 2024.
Stay tuned for more updates, and feel free to drop any questions below!
Can you give some examples of what is the tax for someone earning 12 lakhs, 15 laks, 25 lakhs, 50 lahs etc before and now?
Will this be applicable for fy25 too? and what is updated returns?
And how much rent can someone pay to his landlord in cash? any maximum limit for that?
Let me ask this way. If a person has income of lets say 13L total. 12L is salary and 1L is STCG. Will the person be eligible for complete tax rebate on 12L and only pay 20k tax on capital gain?
Hey @npsh99 Yes, rebate u/s 87A will be available on normal rate of Income and the income threshold for eligibility of rebate has been increased to 12 lakhs from 7 lakhs earlier.
Thus, as per your income situation you have to pay 20% on STCG i.e 20k on STCG of 1 lakh and no tax if income is upto 12 lakhs.
Thanks.
Hey @siva Sure, please find the below image for Income tax payable under new regime earlier and proposed change from FY 2025-26:
Hope, this helps.
The changes will be applicable from FY 2025-26 i.e 1st of April 2025.
ITR U (Updated Return) was introduced in 2021-22 to allow taxpayers to file a corrected return in case the last date to file a revised ITR has lapsed. Earlier the taxpayer could file an ITR U till end of 2 years from the end of the relevant AY. But now, the government has extended that time limit to 4 years.
For example, you can file ITR U for AY 2021-22 till 31.03.2026.
As per the income tax act, there is no limit of paying rent in cash, however we always recommend a taxpayer to pay the rent through bank mode rather than cash. In case you are an owner, and receiving rent of upto 6 lakhs per annum, then there will be no TDS means you shall receive rent without any deduction from April 2025 onwards.
Thank you.
Will it be beneficial to professional who opt for 44ADA??
Yes, as per section 44ADA, you have to report income as 50% of the total receipts earned in a financial year.
Thus, earlier if your receipts was 14 lakhs income would have been 7 lakhs u/s 44ADA for 0 Income tax. Now, there will be 0 tax if receipts are upto 24 lakhs in a financial year and income is upto 12 lakhs u/s 44ADA.
Thank you.
I have real estate profit of 5 Lakhs and Long term stock sale loss of 3 Lakhs so can I get offset ?
Also clarify can i get offset Short term loss also?
Hey @Ravi_Shankar
Please find the rules for set off of loss as below:
In case of LTCL - It can be set off against only LTCG (from any asset)
In case of STCL - It can be set off against STCG & LTCG both.
Hope, this clarifies your query.
Thanks
Option profit is treated as business income.
So it comes under tax slabs I am right?
LTGC and STGC we need to pay irrespective to tax SLABS I am right? Even if one person total income is 7Lakhs but if he has LTGC profit so he need to pay LTGC tax?
Request you to update the tax calculator on your website which is not updated even for FY25.
Hi @vivek7 Noted, we shall make the necessary changes to the calculator soon and you will be able to compare the tax liability under both the regime.
Appreciate your patience.
Thank you.
If someone doesn’t file return last year, can he file return now for the last year under this revised itr?
or is it just for filing corrected return?
Hi, Is it wise to close Housing Loan early by premature closing of Fixed Deposits since we do not get any tax benefits under New Tax Regime?
Will interest from fixed deposits/ savings accounts and government securities be considered part of salary, or will it be taxed as per the applicable income tax slab?
Hi @Passionate_trader Extension is given to file ITR U i.e updated ITR and not a revised ITR.
Thus, if you have not filed ITR last year, you can file an ITR U with penalties as mentioned in the Income Tax Act.
Hope, this helps.
Hey @Shilpa_Mahesh
We would recommend you to consult an investment advisor and understand various aspects before closing FD and repaying the housing loan. Tax is just one factor to decide. There can be other factors too like interest on FD etc.
Thank you.
