You are an earning member of your family with a very stable income, currently sitting on the chair in front of the television decoding the budget 2024.

That’s why we bought you the details of two very important aspects of the budget.

Taxpayers have always been concerned about the taxation rates the government announces every financial year.

Whether, income tax slab rates or capital gain tax rates, we always needed clarification about the changes that the government introduces every financial year.

So with the dust settling on this financial year budget, let’s delve into the nitty-gritty of different tax structures that might affect your financial situation.

Also Read: Conquer Capital Gains Tax – Savvy Strategies for Mutual Fund Investors

The Basics: The Indian Income Tax Slabs

So, In our country government has put up a tax slab system that classifies individual based on their income. Different tax rates are defined for different income individuals. The tax slabs also got updated with the change in income of the individual. The higher your income, the higher the tax rate you pay on that portion of your earnings.  

With every budget session, the tax slabs are revised periodically according to the need. These tax slabs are important as it provide a fair and clear tax system in the country.

Let’s dive into the income tax slab rates for FY2024-25

INCOME TAX SLAB	INCOME TAX RATE
UP TO RS 3,00,000	NIL
RS 3,00,001- 6,00,000	5% ABOVE 3,00,000
RS 6,00,001- 9,00,000	RS 15,000+ 10% ABOVE RS 6,00,000
RS 9,00,001- 12,00,000	RS 45000 + 15% ABOVE RS 9,00,000
RS 12,00,001- 15,00,000	RS 90,000 + 20% ABOVE RS 12,00,000
ABOVE RS 15,00,000	RS 1,50,000 + 30% ABOVE RS 15,00,000

CAPITAL GAINS TAXATION

Capital gains taxes apply to the profit that we people make on the sale of a capital asset that is with us for a longer time. 

Usually, Capital gains are of two types depending on the tenure for which you are holding your asset.

• Short-term Capital Gains (STCG)
• Long-term Capital Gains (LTCG)

Short-term Capital gain tax:

When assets are held for less than a specific year (Usually One year), those assets come under short-term capital gains. Individuals are usually taxed at their income tax slab rate. Example:

Listed equity shares are classified as short-term if they are held for not more than 12 months, and immovable assets( land and buildings) are classified as short-term if they are held for less than 24 months.

Long-term capital gain tax:

When assets are held for more than a specific year (Usually more than a year), those assets come under long-term capital gain tax. Keep in mind, that different asset has different tenure that comes under long-term capital gain. Example:

Equity mutual funds are considered long-term if they are held for more than 12 months.

Capital gains tax rates:

CAPITAL ASSET	HOLDING PERIOD	LONG TERM CAPITAL GAIN TAX (LTCG)	SHORT TERM CAPITAL GAIN TAX (STCG)
STOCKS	>12 MONTHS	10% OF GAIN	15% OF GAIN
EQUITY ORIENTED MUTUAL FUND	>12 MONTHS	10% OF GAIN	15% OF GAIN
OTHER MUTUAL FUNDS	>36 MONTHS	20% WITH INFLATION INDICATION	TAXED BASED ON INCOMETAX SLAB
IMMOVABLE PROPERTY	>24 MONTHS	20% WITH INFLATIONINDICATION	TAXED BASED ON INCOMETAX SLAB
MOVABLE PROPERTY	>36 MONTHS	20% WITH INFLATIONINDICATION	TAXED BASED ON INCOMETAX SLAB.

Winding Up:

So, we all know understanding all these financials can be confusing and overwhelming, but it doesn’t have to be the same way always. By staying informed about the latest changes, you can make well-considered financial decisions.

Budget 2024 introduced some welcome changes for salaried individuals and maintained the LTCG structure for key asset classes. However, navigating the intricacies of tax filing can still be a challenge.

That is why we (Divadhik) are here for you, get help from our well-trained tax professional who will not only help you to know your tax slab but will also help you with tax deductions.

Don’t let tax season stress you out!

Contact Divadhik today for a consultation and let us handle the complexities, so you can focus on what matters most.

Visit our website or call us to schedule an appointment. We’re here to make your tax filing experience smooth and hassle-free.