The Union Budget introduced many changes for salaried individuals; but what does it all mean? Let’s break it down in this video with the example of Mohan, a salaried employee.
First, we look at changes in Mohan’s tax liabilities on his annual income of ₹10 Lakhs. Under the revised new tax regime, his standard deduction increases to ₹75,000, lowering his taxable income to ₹9.25 Lakhs. But with his new applicable tax slab, Mohan will pay just ₹42,500, saving ₹10,000.
Next, you’ll understand the tax changes for Mohan’s investments. If he buys shares worth ₹2 Lakhs and sells them for a 35% profit after 10 months, he will have to pay 20% short-term capital gains tax. We’ll also discuss how long-term capital gains tax of 12.5% applies to his shares if he holds them for 2 years.
After that, the video explores Mohan’s property transactions. Suppose he sells a property for ₹70 Lakhs which he bought for ₹50 Lakhs in 2015. Previously, indexation adjusted its cost to ₹64.82 Lakhs, with a 20% LTGC tax. Now, though, the indexation benefit is removed, he’ll pay 12.5% tax.
This is how the Union Budget’s tax reforms may impact you! For more details on the budget, stay tuned to Academy!
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