Standard Deduction Hiked, Angel Tax Abolished, Reduced Corporate Tax On Foreign Companies Says FM

The Finance Minister has revised the new tax structure under the new tax regime. Along with it, the standard deduction is hiked to Rs. 75,000 from Rs. 50,000 under new tax regime. Salaried employee will save Rs 17,500 in income tax, the FM added.

Similarly, deduction for family pension for pensioners to be enhanced from ₹15,000 to ₹25,000. This will provide relief to about 4 crore salaried and pensioner individuals, the FM said.

Securities Transaction Tax on Futures and Options contracts is to be increased to 0.2% and 0.1%, respectively, the FM said. Income received on buyback of shares to be taxed in the hands of the recipient.

Tax deduction on NPS contributions to be raised from 10% of salary to 14% of salary. This will cover government employees as well as private companies in the NPS.

The FM further announced that Corporate tax rate on foreign companies reduced to 25%. The FM also abolished the angel tax which gives a huge relief to start ups.

TDS rate on e-commerce operators to be reduced to 0.1 percent from 1 percent.

Short term gains on certain financial assets will be 20 percent, rest is applicable tax rate.

Long term capital gains will be 12.5 percent. Listed financial assets held for more than a year will be classified as long term.

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