Income Tax Calculator FY 2024-25

One must spend his hard-earned money effectively and efficiently, whether to pay for daily expenses or investments other expenses.  One will expect that the taxes paid by him/her are also spent wisely, this was an expectation from the ages of the Bible, at the same time paying taxes- abiding by the rules of the state- must be because of one’s conscience. The Bible says- Romans 13:1,6-7 “Therefore one must be subject, not only because of wrath but also because of conscience.  For the same reason, you also pay taxes, for the authorities are God’s agents, busy with this very thing. Pay to all what is due them: taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honour to whom honour is due.”   In short, saving taxes as well as paying taxes must be because of one’s conscience.

As the government does not offer more tax soaps, the taxpayers should be more prudent and vigilant to save their taxes.

·       The new regime offers better tax plans to those who stay at a rented house or do not have housing loan repayments. Their tax saving will be higher without having any tax-saving investments, or the savings from investments will be negligible as compared to the investments one has to make. Suggest such people to invest in non-tax saving schemes that give higher returns.

·       Those who are staying in rented accommodation or having a housing loan repayment are suggested to strictly compare the benefits before selecting the tax regime for the year.

Have a good tax planning ahead.

Union budget 2024 has made the following changes in the taxation.

Salaried Employees.

Old regime- No changes.

New Regime- Following are the changes.

1.      Income slabs are changed as follows:

·       Rs 0-3 lakh: Nil (unchanged)

·       Rs 3-7 lakh: 5%

·       Rs 7-10 lakh: 10%

·       Rs 10-12 lakh: 15%

·       Rs 12-15 lakh: 20%

·       Above Rs 15 lakh: 30% (unchanged)

2.      The standard deduction is increased from ₹50,000 to ₹75,000.

3.      Deduction on employer's contribution u/s 80CCD(2) has been increased from 10% to 14% of Basic salary and Dearness Allowance.

Other Changes in Taxation on Capital Gains

Budget 2024 has made significant changes on the tax implications on the capital gains which are as under:

• Holding period for determining long-term and short-term has been simplified for all listed securities - a period of 12 months is to be considered, and for other assets period of 24 months should be considered for determining whether the asset is a long-term capital asset or not.
• Further, indexation benefit made optional.
• LTCG Tax Rate u/s 112A and 112 have been changed to 12.5% from 23rd July, 2024, without indexation benefits.
• STCG Tax Rate u/s 111A has been increased to 20% from 23rd July, 2024.
• Further, exemption limit u/s 112A has been increased from Rs. 1 lakh to Rs. 1.25 lakhs.