Budget 2025: LTCG to Crypto Tax .. 10 major improvements presented by Center in final budget

Budget 2025: Union Finance Minister Nirmala Sitarman will launch the Union Budget 2025 tomorrow 2025. This is the eighth consecutive budget launched by Nirmala Sitarman, including last year’s interim budget. Many major improvements have been brought in the previous budget. For example, a new tax system was introduced in 2020 and in 2024 the capital gain structure was restored. We have briefly explained the major reforms launched by the Finance Minister over the years. These have been influenced by individual taxpayers in a significant way.

10 major versions presented in the last budget

1. New Income Tax Policy: The Finance Minister has declared the new tax system as an alternative policy in Budget 2020. It was brought to simplify the tax system which provides concessional tax rates, eliminating the benefits of some exceptions.

2. The new approach is default: In Budget 2023, the new tax system was converted into a default policy. All taxpayers who do not choose the old tax system will have to file their tax returns according to the new tax system. However, people who want to continue the old tax system have given that opportunity.

3. Capital Benefit Tax Edition: The budget has made several significant changes about 2024 capital gains. they are ..

A. STCG: In 2024, the tax rate increased from 15 percent to 20 percent on small profit on specific financial assets.

B. LTCG (Long -Term Capital Gain): 12.5 percent tax rate on prolonged profit on all financial and non -finricular assets (first 20 percent earlier). Capital profit discount limit on some listed financial assets has increased from Rs 1 lakh to Rs 1.25 lakh per year.

4. Assessment again -opting: In Budget 2021, the time limit for the re -administrator of evaluation was reduced to 6 years. Even in cases of severe tax evasion, if there is evidence that the income of 50 lakh or more in a year is hidden, then the evaluation is allowed to reopen for 10 years.

5. Standard Cut: In 2024, the standard reduction for wage employees following the new tax system was increased from Rs 50,000 to Rs 75,000. In the same year, those who follow the new tax system have increased the tax exemption on family pension from Rs 15,000 to Rs 25,000.

6. New slab rates: Budget 2024 has introduced a new tax slab for those who follow the new tax system. According to the new slab, people with income up to Rs 3 lakh have no tax. There is 5 % tax between Rs 3-7 lakh. The tax rate between 7-10 lakhs is 10 %. The tax rate for those earning between 10-12 lakhs is 15 percent, for which for income between 12-15 lakhs and 30 percent for income of more than Rs 15 lakh.

7. Rebate on income up to Rs 7 lakh in new tax system Has been declared. In the budget of 2023, the income limit for income tax exemption in the new tax system has increased from Rs 5 lakh to Rs 7 lakh.

8. Charge on the highest income: In the budget of 2023, the new tax system has been reduced from 37 percent to 25 percent on income of more than Rs 5 crore.

9. Update Return: Taxpayers have introduced an updated return regulator for filing ITR (update) returns after the end of the year after the end of the year after the end of the relevant assessment year.

10. Tax on crypto assets: The government introduced 30 percent tax on virtual digital assets in 2022. TDS has also been introduced on the transfer of these assets.