The budget was announced today, and there are several reforms announced on the income tax front. Here are the major updates:
New Income Tax Bill 2025: A new income-tax bill is in the works to replace the existing Income Tax Act. The aim is to make tax laws clearer and more accessible, reducing the chances of litigation.
Increased tax rebate: The income threshold for the rebate has been raised from ₹7 lakhs to ₹12 lakhs. This means individuals earning up to ₹12L will now pay zero taxes.
This rebate is only applicable to income taxed at slab rates, not on special rate income like capital gains.
TDS updates:
For senior citizens, the threshold for TDS on interest income has doubled, now standing at ₹1 lakh instead of ₹50,000.
The annual TDS limit for rent payments has been increased from ₹2.4 lakh to ₹6 lakh.
TCS updates:
The threshold for TCS on foreign remittances under the LRS scheme has increased from ₹7 lakh to ₹10 lakh.
TCS will no longer apply on money sent abroad for education if the payment is made via a loan from a specified financial institution.
Timeline to file updated return extended: You now have more time to file updated returns — the limit has been extended from 2 years to 4 years.
NSS exemption for senior citizens: Withdrawals from the National Savings Scheme (NSS) will be tax exempt starting 29 August 2024.
These are some top-level updates. We’ll post more on specific changes where we’ll try to cover more nuances related to them.
You can post your thoughts on the budget below!
We also made a detailed video covering all the budget amendments.
Yes, the revised slab and tax rebate will be available to HUFs as well.
@Surbhi_Pal Can you please double check the above answer? I spoke with few CAs and they said the new tax slabs released in this budget are not applicable to HUF, they are for individuals.
As per the Income tax act, different category of persons such as Individuals, HUF, company, partnership firms, etc have been allocated different rates of taxes.
Individuals and HUF are taxed at slab rates as per the laws. The budget speech mentioned that the new slabs will benefit the middle class, as majority ITRs are filed by Individuals using the slab rates. But the slab rates shall always apply to individuals and HUF.
Therefore, your HUF will not be required to pay any taxes for ₹11 lakh of total income (provided it doesn’t include any special rate income).
This part seems incorrect. When I spoke with CAs, they said that HUF tax slabs are not changed and new slabs are only for individuals. So if HUF earns 11 lakh (no special rate income), tax will still be applicable as part normal HUF tax slabs. Just thought to share so that there is no confusion for other viewers of this thread.