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Tag: Budget 2024

  • Finance Ministry’s BIG TAX Move Soon On Property Transaction Amid Indexation Discontent | Real Estate News

    In relief for property owners, the Finance Ministry is mulling to bring relief for transactions held before July 23, 2024, the date on which the Budget was presented. In the budget, Finance Minister Nirmala Sitharaman has removed the indexation rule on property transactions. The move led to significant discontent with experts pointing out that after the removal of the indexation benefit, sellers will have to pay more taxes.

    Seeing the widespread discontent, the NDA government is now planning to offer some relief to the property owners.  

    Finance Minister Nirmala Sitharaman has proposed an amendment to the Finance Bill, offering significant relief on capital gains tax for property transactions. According to the amendment, taxpayers can choose between a lower tax rate of 12.5 per cent without indexation or a higher rate of 20 per cent with indexation for properties acquired before July 23, 2024, the date the union budget was presented in the Lok Sabha. 

    Taxpayers can calculate their taxes under both options and select the one with the lower tax liability. This new cut-off date of July 23, 2024, replaces the previous cut-off of 2001, alleviating concerns for long-time property owners.

    In the Finance Bill, Sitharaman proposed a flat long-term capital gains tax of 12.5 percent with no indexation benefits. Before it, property transactions used to be taxed at 20 per cent with indexation benefit. Now with the proposed amendments, taxpayers will have a choice like they have in paying income tax under the old structure with deductions or under the new tax structure without deductions.

    The proposed amendment will apply not only to real estate transactions but also to unlisted equity transactions, which are done before July 23, 2024. All such transactions will be taxed at 10 per cent long-term capital gains instead of the budget proposal of 12.5 per cent tax.

    The Lok Sabha began discussing the Finance Bill after the Appropriation Bill for the central government’s expenditure for 2024-25 was passed by the House on Monday. The passage of the Finance Bill by Parliament will complete the budget process.

  • EaseMyTrip To Hire 500 Employees Under One Crore Internship Scheme Announced In Budget 2024 | Companies News

    New Delhi: EaseMyTrip, an Indian online travel company headquartered in New Delhi, will hire 500 interns under a Central Government scheme announced in the Union Budget.

    Nishant Pitti, CEO & Co-Founder of EaseMyTrip, made this announcement on the social media platform ‘X’ after attending Prime Minister Narendra Modi’s inaugural session of ‘Journey Towards Viksit Bharat: A Post Union Budget 2024-25’ Conference organized by the Confederation of Indian Industry (CII) in New Delhi today.

    Pitti on X said, “We announce that @EaseMyTrip will be hiring 500+ employees across India under the new employment scheme introduced by our Hon’ble Finance Minister in the 2025 budget. This initiative supports the government’s vision of employment and skill development for more than 10M youth. We commend Hon. PM @narendramodi ji for his unwavering commitment to building a #ViksitBharat. More details to follow.”

    EaseMyTrip is the first company to announce the hiring of 500 interns after the Finance Minister announced the internship scheme in the Union Budget. EaseMyTrip was founded in 2008 by Nishant Pitti, Rikant Pitti, and Prashant Pitti.

    The company provides hotel bookings, air tickets, domestic and international holiday packages, bus bookings, and white-label services. EaseMyTrip has overseas offices in Singapore, UAE, and Thailand, with country-specific websites for UAE, UK, and Thailand.

    Finance Minister Nirmala Sitharaman announced in the Budget speech that the Centre will launch a scheme for internship opportunities for the youth in the top 500 companies of India as part of the Union Budget 2024-25.

    She said this scheme will be implemented over the next five years and is expected to benefit 100 million youth. Interns will receive a monthly stipend of Rs 5,000 and a one-time assistance of Rs 6,000. The companies will bear the cost of training the interns via corporate social responsibility.

    Pitti said, “We are elated as we plan to add 500+ talented individuals to our team. This move supports the government’s futuristic vision for the country and perfectly aligns with our growth strategy. The expansion underscores our dedication to nurturing the next generation of industry leaders. As we invest in human capital, we intend to set new benchmarks for excellence in the travel sector in India.”

    He further added, “The Hon’ble Prime Minister’s commitment to building a Viksit Bharat is commendable, and we truly support his vision. Our plans to expand our team signify a notable step towards empowering the youth, driving innovation, and contributing to the nation’s progress.”

    EaseMyTrip’s plan to undertake large-scale hiring will positively impact the Indian travel industry’s landscape. By bringing in fresh talent, the brand is helping generate employment in the market while paving the way for growth and innovation across the ecosystem. 

  • Watch: Nirmala Sitharaman’s Face-Palm Moment In Lok Sabha On Rahul Gandhi’s ‘Halwa’ Remark |

    Leader of Opposition Rahul Gandhi launched a scathing attack on the NDA government today while speaking about the Budget 2024. Speaking in Lok Sabha, Gandhi reiterated that once Congress comes to power, it will carry out the caste census on the first go. He also alleged that the people of the country are not getting their due rights based on their percentage. Showing a picture of the Halwa ceremony in the lower house, Rahul Gandhi said that OBC or tribal or Dalit officers were not part of the Halwa ceremony. At this point, Finance Minister Nirmala Sitharaman was seen using her palm to cover her face in bemusement. 

    “Budget ka halwa’ is being distributed in this photo. I can’t see one OBC or tribal or a Dalit officer in this. Desh ka halwa bant raha hai aur 73% hai hi nahi. 20 officers prepared the Budget of India…Hindustan ka halwa 20 logon ne baatne ka kaam kiya hai….Of the 20 people, only one was from the minority and one from the OBC. However, none of the two was present in this photo. They were sent back at the time of the photograph,” said Rahul Gandhi. 

    #WATCH | In Lok Sabha, LoP Rahul Gandhi shows a poster of the traditional Halwa ceremony, held at the Ministry of Finance before the Budget session.

    He says, “Budget ka halwa’ is being distributed in this photo. I can’t see one OBC or tribal or a Dalit officer in this. Desh ka… pic.twitter.com/BiFRB0VTk3
    — ANI (@ANI) July 29, 2024

    Before the Lok Sabha polls, Rahul Gandhi had alleged that there were only 3 OBC officers among the top 90 bureaucrats. During the Lok Sabha polls, Rahul Gandhi promised – Jitani Aabadi, Utna Haq – saying that people would get their due representation as per the constituents of their population. 

    Responding to Rahul Gandhi’s remarks on bureaucrats, Union Home Minister Amit Shah said that the Congress leader is unaware of what he speaks. “The present secretaries in the Government of India were recruited at the time of the Congress government,” said Amit Shah, reminding Rahul Gandhi that he should question the Congress party for a lesser number of OBC secretaries at present. Shah also said that the Prime Minister of India is OBC but Rahul is counting the secretaries. 

  • iPhone 15 Pro Max, iPhone 15 Pro, And iPhone 14 Prices Drop in India After Customs Duty Relief; Check New Price |

    iPhone Price Cut: Good News For iPhone users! Apple has reduced the prices of its premium iPhone models in India. The California-based tech giant announced this after Finance Minister Nirmala Sitharaman presented the Union Budget 2024. The budget includes a reduction in basic customs duty on smartphones from 20 per cent to 15 per cent. It is important to note that the price cut also comes at a time when demand for iPhones seems to be slowing down in China.

    Notably, this is the first time that Apple has reduced prices for its Pro models. However, the company usually discontinues Pro models after the new generation of Pro models are launched.

    According to the Economic Times, despite these price cuts, the maximum retail price (MRP) of Pro models has stayed the same. However, dealers and resellers are offering selective discounts to clear out older inventory.

    Furthermore, iPhone shipments in India climbed 39 per cent to 9.2 million units in 2023, making it the company’s fifth-largest market for its phones. India’s market for iPhones is larger than any single country in the European Union, as Morgan Stanley reported.

    In India, imported smartphones are subject to an 18 per cent GST, a 22 per cent customs duty, and a 10 per cent surcharge on the basic customs duty. Let’s take a quick look at the new smartphone prices in India-

    – iPhone 15 Pro has been reduced by Rs 5,100 and is now priced at Rs 1,29,800.

    – iPhone 15 Pro Max has been slashed by Rs 5,900 and is now selling for Rs 1,54,000.

    – iPhone 15 Plus has also been reduced by Rs 300 and is now priced at Rs 89,600.

    – iPhone 14 has been lowered by Rs 300 and is now selling at Rs 69,600.

    – iPhone 13 has similarly been reduced by Rs 300 and is now available for Rs 59,600.

    – iPhone SE has received a more substantial price cut of Rs 2,300 and is now priced at Rs 47,600.

    In the case of Apple, 99 per cent of the mobile phones sold in India are currently manufactured locally, with only a few high-end models being imported.

  • Budget 2024: Decoding The Calculation Of LTCG Under Old And New Capital Gain Tax Regime For House Purchased Before And After 2001 | Personal Finance News

    New Delhi: The Budget 2024 announcement has put the limelight on a fresh debate on whether removing indexation is going to have significant implications for property owners. 

    Sunil Tyagi, Maging Partner, Zeus Laws, in a candid conversation with Reema Sharma of Zee News has shared a detailed calculation on both the scenario when a house is bought before 2001 and after 2001. Here’s all you want to know.

    When a house / immovable property is sold the profit / gain from such sale can be long-term or short-term.

    Ø What is Short-Term Capital Gains (STCG)- If a house is sold within a period of 24 months from the date of its purchase, then any profits / gains from the sale of the house will be treated as short-term capital gain, and the amount of short-term capital gain which will be treated as a part of seller’s total income and will be taxed as per the existing tax slab rates as applicable to such Seller.

    Ø What is Long-Term Capital Gains (LTCG) –If a house is sold after a period of 24 months from the date of its purchase, then any profits / gains from the sale of the house will be treated as long-term capital gain, and the amount of long-term capital gain will be taxed @ long-term capital gain tax applicable in the financial year in which such sale has been affected.

    Ø What is Indexation – Indexation is the process of adjusting the purchase price of the immovable property for inflation.

    Prior to the changes in the Capital Gain Tax regime introduced in the 2024 Budget, the benefit of indexation (i.e., adjusting the value of property as per current market scenario) was available, and the Long-Term Capital Gains was taxable @ 20%.

    In the revised Capital Gain Tax regime introduced in the 2024 Budget, the tax on Long-Term Capital Gains has been reduced from 20% to 12.5% for property sales, however, the benefit of indexation has been discontinued. In cases of properties acquired prior to 01.04.2001, the fair market value as on 01.04.2001 shall be considered as Deemed Cost for computing capital gains tax.

    Case 1 : Calculation of Long Term Capital Gain tax under old and new Capital Gain Tax Regime in case a Case 1 : Calculation of Long Term Capital Gain tax under old and new Capital Gain Tax Regime in case a house is purchased after year 2001:




    Case 2: Calculation of Long Term Capital Gain tax under old and new Capital Gain Tax Regime in case a house is purchased before year 2001




     

    Meanwhile, Prashant Thakur, Regional Director & Head – Research, ANAROCK Group told Zee News, “The elimination of indexation benefits might cause a decrease in investor interest as indexation adjusts the buying price to account for inflation, thereby decreasing the capital gains tax on property sales. Without this advantage the tax burden rises, making real estate investment less appealing. This change could have an impact on high value properties potentially leading to a decrease in demand for such properties.”

     

  • Jaya Bachchan Expresses Disappointment Over Budget 2024; Calls It A ‘Drama’, Says Promises Will Remain On Papers People News

    New Delhi: This year’s budget by Finance Minister Nirmala Sitharaman has become the topic of discussion as many are expressing their displeasure over the same. There are many new projects that the Finance Minister has promised and also gave a tax waiver to the working professionals.

    However, the budget hasn’t been up to mark and the layman is not very happy. And now Bollywood’s veteran actress turned politician Jaya Bachchan too has slammed the budget.

    Have a look at the video:

    #WATCH | Delhi | On INDIA bloc protest against Union Budget, Samajwadi Party MP Jaya Bachchan says, “This budget doesn’t deserve a reaction. This is just a drama. Promises which will be kept in papers will not be implemented.” pic.twitter.com/FHyKIbeO9r — ANI (@ANI) July 24, 2024

    When asked about her point of view on the budget, she took a dig and said to ANI” I have no reaction. Yeh koi budget hai reaction karne waala. Kuch nahi. This is just a drama. Promises which will be kept in the paper. Will not be implemented.

    Jaya Bachchan is one of the fierce women in the industry and over the years she has been the strong opposition to the ruling party and never fails to express her views if she finds something misfit and inappropriate.

    Other celebrities turned politicians from the ruling party hailed the Budget including Kangana Ranaut, Shatrughan Sinha, and Chirag Paswan. Shark Tank ex-judge and businessman Ashneer Grover called the budget a waste of time and mentioned he would rather watch another Ambani wedding.

  • Budget 2024: Rebate Under Section 87A Decreases By Rs 5K As Tax Structure Under New Tax Regime Revised — Understanding The Math | Personal Finance News

    New Delhi: Finance Minister Nirmala Sitharaman, presenting the Budget 2024 in Parliament made two significant announcements for the employed people to make for those opting for the New Tax Regime. First, the standard deduction for salaried employees is proposed to be increased from Rs 50,000 to Rs 75,000. Similarly, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000. Secondly the FM announced a revised tax structure under the New Tax Regime.

    What is the new tax slab under the New Tax Regime?

    There will be zero tax on income between Rs 0 to Rs 3 lakh, under the new tax regime. There will be a 5 percent tax on income between Rs 3 to 7 lakh, 10 percent tax on income between Rs 7 to 10 lakh, 15 percent on income between Rs 10 to 12 lakh, 20 percent on income between Rs 12 to 15 lakh and 30 percent tax on income above Rs 15 lakh.

    Which tax slab was in place earlier?

    Till now, under the new tax regime, income between Rs 0 to Rs 3 lakh was tax-free. There was a 5 percent tax on income between Rs 3 to 6 lakh, 10 percent on income between Rs 6 to 9 lakh, 15 percent on income between Rs 9 to 12 lakh, 20 percent on income between Rs 12 to 15 lakh, and 30 percent tax on income above Rs 15 lakh.

    Understanding how the rebate has been reduced by Rs 5000

    You used to receive a tax refund of Rs 25,000 under Section 87A of the new tax regime if your total taxable income was less than Rs 7 lakh. There was no tax on your salary till Rs 0-3 lakh. The tax at a 5 percent rate was Rs 15,000 on a salary of Rs 3-6 lakh. On the other hand, the tax at the 10 percent rate was Rs 10,000 on a salary of Rs 6-7 lakh. In this way, you would get a full rebate of Rs 25,000.

    Now after the change in the tax slab, your salary up to Rs 3 lakh becomes tax-free. You have a tax liability of Rs 20,000 at the rate of 5% on the slab of Rs 3-7 lakh, on which you would receive a refund under Section 87A. This indicates that the rebate, which was previously Rs. 25,000, is now Rs. 20,000. Thus, the refund you receive under section 87A has decreased due to the change in tax slab.

    Will there be any losses for you?

    You may be wondering if you would lose out because the change in tax slab will result in a smaller refund. The response is negative. If your taxable income was up to Rs. 7 lakh earlier you would receive a refund of Rs. 25,000; going forward, you will receive a refund of Rs. 20,000. Your salary up to Rs 7 lakh would be tax-free in any case.

    Who stands to gain?

    Those whose taxable income exceeds Rs 7 lakh will profit from the change in the tax slab. Those whose income exceeds Rs 7 lakh will not be eligible for the 87A rebate. Previously, individuals in this category had to pay a tax of Rs. 25,000 on income up to Rs. 7 lakh. However, now, they will only be required to pay a tax of Rs. 20,000.

  • Budget 2024: LTCG Reduction On Property Without Indexation Bad News For Sellers; Check Calculation | Real Estate News

    Finance Minister Nirmala Sitharaman presented her 7th budget in which she announced some changes in the new tax slabs while the old remain untouched. FM Sitharaman also proposed a long-term capital gain tax rate of 12.5% on all financial and non-financial assets including properties. Listed financial assets held for more than a year will be classified as long-term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term. 

    “Long-term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to Rs 1.25 lakh per year,” said the FM. The Finance Minister also announced to remove the indexation clause for the ease of tax computation. However, this will prove detrimental for the property sellers. Indexation is used to adjust the property price at the time of sale to account for inflation. 

    Check Property Sale LTCG Calculation Here

    The Congress party shared a detailed calculation showing how LTCG reduction without indexation is not good news for people. “Suppose you bought an apartment in January 2009 for Rs 50 lakhs. Fifteen years later, you sold it today for Rs 1.5 crore. With indexation, the Rs 50 lakhs you paid 15 years ago is considered to be worth Rs 1.32 crore today. So, the net profit or capital gain is only Rs 17.5 lakhs, and you’d pay only Rs 3.5 lakhs as Capital Gains Tax at the rate of 20%. But without indexation, your capital gain now is Rs 1 crore, and at 12.5%, you’d end up paying Rs 12.5 lakhs in tax. Essentially, the government takes Rs 9 lakhs more than the old method,” it said.


    It further clarified that if you bought an apartment in January 2018 for Rs 80 lakhs and sold it today for Rs 95 lakhs due to a personal emergency. “This is where it gets tough. If indexation was applicable, you actually made a loss of Rs 11.76 lakhs and would have paid ‘Zero’ LTCG tax. But with the new method, Nirmala Sitharaman will add salt to your wound. She will take Rs 1.87 lakhs from you as LTCG. Your net loss becomes Rs 13.63 lakhs,” it said.


    For those unfamiliar with the Cost Inflation Index (CII), it shows how the value of Rs 100 in 2001-02 is now Rs 363. 

    LTCG to Loot Middle Class | How will removing indexation in calculating LTCG tax affect everyone?

    Today, FM @nsitharaman reduced Long Term Capital Gains (LTCG) Tax on properties to 12.5%, but cleverly removed indexation, which adjusts the property price at the time of sale, to… pic.twitter.com/6uaYjtIaDP
    — Congress Kerala (@INCKerala) July 23, 2024

    The Income Tax Department also shared a test calculation scenario where it claimed that people will save taxes due to removal of the indexation.

    Taxation of Capital Gains – Salient Points

    Holding period has been simplified. There are only two holding periods, for listed securities, it is one year, for all other assets, it is two years.

    Rate for short-term STT paid listed equity, Equity oriented mutual fund and… pic.twitter.com/w1AdvHDInV
    — Income Tax India (@IncomeTaxIndia) July 23, 2024

    Even experts shared the same concern. They agreed that removing indexation defeats the whole purpose of LTCG. “This affects everyone and will push more people to undervalue their transactions, increasing the use of black money. This makes real estate investments less attractive and could drive our construction sector into an even bigger crisis,” it said.

  • Budget 2024: What Is Angel Tax That Is Abolished By FM Nirmala Sitharaman And How Will It Benefit Investors? | Personal Finance News

    Budget 2024: India’s Finance minister Nirmala Sitharaman has proposed the abolishment of the ‘Angel Tax’ for all classes of investors to promote the growth of budding entrepreneurs in the country. Finance Minister Nirmala Sitharaman made this move while presenting the Union Budget 2024-25 on Tuesday. 

    “To bolster the Indian startup ecosystem, boost the entrepreneurial spirit, and support innovation, I propose to abolish the so-called angel tax for all classes of investors,” FM Nirmala Sitharaman said while presenting the budget 2024. 

    What Is Angel Tax And How Will It Benefit Investors? 

    The “Angel Tax” refers to a levy imposed on the capital raised by unlisted companies through the issuance of shares to investors. This tax targets the premium paid by investors above the fair market value of the shares, classifying it as “income from other sources” and taxing it accordingly. The Angel Tax was Introduced in India in 2012 which aims to curb money laundering and prevent the inflow of unaccounted money.

    In September last year, the Income Tax Department notified new angel tax rules that comprise a mechanism to evaluate the shares issued by unlisted startups to investors. Over 1.17 lakh startups are registered with the government. They are eligible for availing of incentives under the government’s Startup India initiative. 

    Commenting on the announcement, Deloitte India Partner Sumit Singhania said it is a positive move as it would help reset not only the tax cost matrix for investors in startups but for foreign strategic investors as well.

    “It also puts out a progressive view of tax policy making by the government. Since this levy has stung for more than a decade since it was introduced in 2012, the withdrawal of angel tax entirely means a timely course correction as the government rolls out the red carpet for long-term strategic investment as well as more risk-capital to promote innovation and R&D,” he said. (With Inputs From PTI) 

  • Union Budget 2024: Timing Of Budget, LIVE Streaming, Where To Watch FM’s Speech Live? | Economy News

    New Delhi: Union Finance Minister Nirmala Sitharaman will present the Union Budget 2024 on Tuesday, July 23.
     

    Union Budget 2024: FM Sitharaman’s Speech Timing

    The live streaming of the Budget 2024 presentation will begin at 11 am today. There will be a slew of options for the audience to stream the Budget 2024 presentation live.  
     

    Where To Live Stream Union Budget 2024? 

    Viewers can watch the live streaming of the Union Budget 2024 presentation on Lok Sabha TV, Rajya Sabha TV, DD News and news channels. The Finance Minister’s address is available to view live online via Zee News Live TV. On July 23, the Zee News app will stream the Budget 2024 live, providing post-budget commentary to help viewers better comprehend the developments. 

    To watch the live presentation of the Union Budget, you can also go to the official Lok Sabha YouTube and Twitter accounts, as well as the official parliament channel, Sansad TV. The Union Budget 2024 speech will also be televised by national broadcaster Doordarshan.

    Union Budget: FM Nirmala Sitharaman’s Speech

    She has given numerous lengthy talks on the budget during the last few years. For example, she gave the longest speech in Indian history in 2019—two hours and fifteen minutes—during her Budget speech. She did, however, surpass her own record in 2020 when she gave a speech that lasted about 162 minutes. The FM gave a one-hour and 27-minute speech in which she announced the 2023 budget.