ITR File 2025: As every year bids farewell, the new year brings not just fresh hopes but also new challenges. Especially for taxpayers, the changes introduced in the income tax rules for 2024 can significantly impact their financial planning and strategy. Understanding these changes and preparing for them in advance is essential to avoid any hassles as the ITR filing deadline approaches.
Major Changes in Income Tax Rules for 2024
1. Introduction of New Tax Slabs
For the financial year 2024-25, the government has revised the tax slabs. Now, there will be no tax on income up to ₹3 lakhs, while the highest tax rate of 30% will apply to income above ₹15 lakhs. This change not only offers tax savings but also provides opportunities for better tax planning.
| Income Range (₹) | Tax Rate (%) |
|---|
| ₹0 - ₹3,00,000 | 0% |
| ₹3,00,001 - ₹7,00,000 | 5% |
| ₹7,00,001 - ₹10,00,000 | 10% |
| ₹10,00,001 - ₹12,00,000 | 15% |
| ₹12,00,001 - ₹15,00,000 | 20% |
| ₹15,00,001 and above | 30% |
2. Increase in Standard Deduction
To provide relief to pensioners and salaried employees, the standard deduction has been increased from ₹50,000 to ₹75,000. This will help reduce taxable income effectively.
3. Enhanced Deduction for NPS Contributions
Under the new tax regime, employers' contributions to the National Pension System (NPS) are now eligible for a deduction of up to 14%, up from the earlier limit of 10%.
4. New Rates for Capital Gains Tax
- Short-Term Capital Gains (STCG): 20% on equity and mutual funds.
- Long-Term Capital Gains (LTCG): 12.5% on all assets.
5. Change in Holding Period
The minimum holding period for calculating capital gains has been revised:
- Listed assets: 12 months.
- Unlisted assets: 24 months.
6. Simplification of TDS and TCS
- TDS on insurance payouts and rent is now 2%.
- TCS on payments made by e-commerce operators is set at 0.1%.
7. Additional Tax on Luxury Goods
From January 1, 2025, luxury goods worth over ₹10 lakhs will attract additional TCS.
8. Revision in TDS on Property Transactions
For property transactions exceeding ₹50 lakhs, TDS will be applicable on the total transaction value, even if an individual seller’s share is less than ₹50 lakhs.
9. Vivad Se Vishwas Scheme 2.0
This scheme, introduced on October 1, 2024, aims to resolve tax disputes efficiently.
10. Reduction in Time Limit for Reopening Old ITRs
For cases with income exceeding ₹50 lakhs, the tax department can now reopen old ITRs for only up to 5 years, reduced from the earlier limit of 10 years.
Conclusion
The changes in the income tax rules for 2024 could have a significant impact on financial planning. Taxpayers are advised to align their investments and tax planning strategies with these changes. By understanding these rules in advance, you can save both time and stress while potentially reducing your tax liability.