New Delhi:
Is your pocket going to have a direct impact since April 1, 2025? Yes, the new budget is going to be implemented and 6 big changes are coming with it. Relief in tax, cheap and cheap goods to studies abroad, everything is going to change. So get ready, because today we are going to break these changes in easy language for you. The budget presented by the government on 1 February will now be active from today. But the question is, when will you benefit from it? Benefits like tax exemption or subsidy will start immediately from April 1, because they are associated with financial year. But the advantage of roads, rail, or big schemes? He will have to wait a little, because they have a long game of tender and construction. So let’s come directly to the issue and see those 6 big changes that are going to touch your life!
1. Changes in tax slab
The first change is in tax slab. There will be no tax on the earnings of up to 12 lakhs in the new tax regime. Also, it limits with standard deduction of 75 thousand. That is, not one rupee will be taxed from your pocket on earning of 12.75 lakhs. At the same time, a new slab of 25% tax has been added for income of 20 to 24 lakhs. Earlier, 30% tax was levied on the earnings above 15 lakhs. But now this limit increased to 24 lakhs. Meaning? Middle and upper-middle class will have good tax savings.
2. TDS limit limit increased
The second change is TDS i.e. Tax deduction at source. Now the limit of TDS on the income from rent has increased from 2.4 lakh to 6 lakhs. That is, if your fare is up to 6 lakhs, then no tax will be deducted. Apart from this, the TDS limit on interest from bank FD for senior citizens has increased from 50 thousand to 1 lakh. The TDS limit of professional services has increased from 30 thousand to 50 thousand. Its easy means – more money will be saved in the pockets of small -earned people and cash flow will be better.
3. TCS limit limit increased
The third change is TCS i.e. in tax collected at source. If you send money to your children for studying abroad, then there will be no TCS on the amount of up to 10 lakh instead of 7 lakhs. And even if this money is taken from the bank loan, the exemption from TCS was deducted from 0.5% to 5% of the first 7 lakhs, which caused problems in transfer. Now the entire money will reach 10 lakhs directly.
4. More time for updated returns
The fourth change is about tax returns. Now after the assessment year, you will be able to file updated returns for 48 months instead of 24 months. But note that between 24 and 36 months, 60% extra tax and 70% extra tax between 36 and 48 months will have to be paid. Advantage of this? You will get a lot of time to fix your mistakes and it will be easy to follow tax rules.
5. Capital gains tax on ULIP
The fifth change is in ULIP i.e. Unit Linked Insurance Plan. If your annual premium is more than 2.5 lakhs, now it will be considered a capital asset. Meaning, the profits will have to be paid on the profit on it. If you keep more than 12 months, 12.5% long term capital gains tax, and kept less then 20% short term tax. The government says that ULIPs should not be used as tax-free investment, because its money is incurred in the stock market.
6. Cheap-cheaper
The sixth change is the custom duty, which will affect 150-200 products. Some things will be cheap, such as expensive cars, life-savings medicines, and EV battery parts. But some will also be expensive, such as smart meters, imported shoes, or LED TV. These changes will mostly be applicable from April 1, but some date will depend on the notification of CBIC (Central Board of Indirect Taxes & Customs). So you will check before shopping! So these were the 6 big changes that are going to knock in your life since 1 April 2025.