Income Tax Rule: The year 2024 is ending and 2025 is about to knock. This year there have been many changes related to Income Tax, which will be applicable while filing ITR next year. Actually, general elections were held between April and June this year, due to which the budget had to be presented in the middle of the year. There were many changes related to income tax in the budget presented in July 2024. Let us know about 5 changes related to income tax, which you will need at the time of filing ITR this year.
1- New income tax slabs
Under the new tax regime, some changes have been made in the income tax slab. Due to these changes, people will be able to save income tax up to Rs 17,500 in a year under the new tax slab. See the new slabs in the picture, which you will need while filing ITR.
2- Standard deduction increased
Under the new tax regime, the government has increased the limit of standard deduction for employed people. Earlier it was Rs 50 thousand, which has now been increased to Rs 75 thousand. For family pensioners, it has been increased to Rs 25 thousand, which was earlier Rs 15 thousand.
3- Deduction under Corporate NPS
In the new tax regime, the deduction limit under corporate NPS has been increased. Till now, under section 80CCD (2), the company used to deduct 10% of the amount in the employees’ NPS account, but now this limit has been increased to 14%.
4- Rules for LTCG and STCG
Short term capital gains from equity and mutual funds will now be taxed at 20%. Till now it used to be 15%. On the other hand, short term capital gains from assets, gold, house etc. will be taxed as per the income tax slab. Apart from this, long term capital gains from assets will be taxed at 12.5%, which was earlier 10%. On the other hand, the tax exemption limit for long term capital gains has been increased from Rs 1 lakh to Rs 1.25 lakh.
5- Holding period of capital gains
The government has also made some changes in the rules for short and long term capital gains, which you will have to keep in mind while filing ITR. According to the new rules, for all listed securities, if the holding period is more than 12 months, then it will be considered long term, otherwise it will be called short term. On the other hand, for non-listed securities, if the holding period is more than 24 months, then only it will be considered long term capital gain.
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