What does the new Budget mean for employed or salaried people?
Income tax saving of up to & 17,500/- for salaried employees in the new tax regime.
Finance Minister Nirmala Sitharaman presented her seventh consecutive Budget in Parliament today - Tuesday, July 23. She announced key employment schemes and also revised the tax structure in the new tax regime, while the slabs in the old tax regime remained unchanged.
The Finance Minister announced a major reduction in customs duty on cancer medicines and mobile phones.
Imported gold, silver, leather goods, and seafood will also get cheaper.
Major changes in personal taxes with an intention to benefit the middle class and pensioners were announced by the FM.
Under the new tax regime, the personal income tax standard deduction will be increased from Rs.50,000 to Rs.75,000, and the deduction for family pensions will be raised from Rs.15,000 to Rs.25,000.
New tax slabs for New Regime
“The earlier slab was 5% for 3-6 lakh rupees. As a result of these changes, a salaried employee in the new tax regime stands to save up to Rs 17,500/- in income tax,” said FM Nirmala Sitharaman.
STCG and LTCG
- STCG on certain financial assets shall attract tax at 20% against current applicable rates.
- LTCG on all financial and non-financial assets increased to 12.5%
- Exemption on LTCG raised to 1.25 lakhs from existing 1 lakhs