Business

Budget 2024: 7 terms to know ahead of FM Sitharaman's announcements

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1. Tax deduction:

This involves deducting a specified amount from taxable income to reduce the overall tax liability.

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2. Rebate:

Represents a reduction in total income tax to stimulate economic activity and ease the tax burden on individuals.

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3. Surcharge on tax:

A surcharge of 10 percent is applied to the tax payable, increasing the total tax liability to 33 percent.

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4. Cess on tax:

The current cess rate is 4 percent, applicable uniformly across income slabs, including surcharge.

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5. New Tax Regime:

The highest tax rate of 30 percent applies to incomes exceeding Rs 15 lakh, accompanied by a reduction in available tax deductions.

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6. Old Tax Regime:

Maintains a maximum tax rate of 30 percent for incomes surpassing Rs 10 lakh, retaining all deductions eliminated in the new regime.

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7. Virtual Digital Assets (VDAs):

VDA includes cryptocurrencies like bitcoin, ethereum, and dogecoin, subject to a 1 percent TDS on sale and purchase and a 30 percent tax on capital gains.

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