Budget 2024: Tax Cuts Announced for Middle Class, LTCG & STCG Rates Hiked

FM Sitharaman revises tax slabs under the new regime, announces tax benefits up to Rs 17,500.

The government has announced some tax cuts for the middle class in the 2024 budget. The new tax regime has been revised to provide tax benefits of up to Rs 17,500. However, the rates of long-term capital gains tax (LTCG) and short-term capital gains tax (STCG) have been increased.

Here is a table summarizing the changes in the tax slabs:

There are two tax regimes in India: the Old Regime and the New Regime. This budget has made changes to the New Regime; however, the Old Regime has remained unchanged. The revised tax slabs under the new regime will benefit taxpayers in the middle-income bracket. For example, a taxpayer earning Rs 5 lakh per annum will save Rs 5,000 in tax under the new regime. The increased standard deduction of Rs 75,000 from Rs 50,000 will also provide some relief to taxpayers.

The government has also increased the rates of LTCG and STCG. The LTCG rate has been increased from 10 per cent to 12.5 per cent, and the STCG rate has been increased from 15 per cent to 20 per cent. Exemption limit hiked for long-term capital gains from 1 lakh to 1.25 lakh.

The impact of these changes will vary depending on individual circumstances. However, the tax cuts for the middle class are likely to be welcomed by many taxpayers. The increase in LTCG and STCG rates is likely to have a negative impact on the stock market.

Overall, the 2024 budget is a mixed bag for taxpayers. There are some tax cuts for the middle class, but there are also some tax increases. The impact of these changes will vary depending on individual circumstances.

Disclaimer: The article is for informational purposes only and not investment advice.