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Budget 2024: During her Budget 2023 speech, Finance Minister Nirmala Sitharaman increased the standard deduction under the New Tax Regime from ₹50,000 to ₹75,000.
At the same time, taxes on Long-term Capital Gains (LTCG) and Short-term Capital Gains (STCG) were hiked to 12.5% and 20%, respectively. Social media users have started reacting to it.
One of the users called it the “worst decision” to increase tax on LTCG and STCG. “Nothing announced for Income Tax payers. Seriously, how many people use old scheme except new employees or those with less than 5 years into job?” wrote another.
“17000 rs under the new tax slab - 3bhk book kar lo friends (Friends, let’s book a 3BHK),” commented one user while referring to FM Sitharama’s claim that salaried employees would be able to save ₹17,500 under the new slabs.
“Long term capital gain tax increased to 12.5%. Now Middle class Indians can contribute more to the Aatmnirbhar Bharat vision of PM Narendra Modi,” wrote another user in apparent sarcasm.
“In Budget 2024, either the rich benefited or the poor did. The middle class can go to Hell, just keep paying their taxes on time and supporting and educating others' children. Drop bombs on the middle class people, that will solve both your problems and theirs,” blasted another.
“Lag gayi (We’re in trouble)….Capital gains taxes gone up,” posted another.
“How will increase in LTCG increase deposit mobilisation for banks? STT, stamp duty, double taxation on dividend & now increase in capital gain tax .. just keep milking taxpayers more n more. Last 10 years -every budget has something negative for capital markets! Disappointing!” wrote Gurmeet Chadha, Managing Partner and Chief Investment Officer of Complete Circle Consultants.
Abolition of Angel Tax
FM Sitharama, in her Budget 2024 speech, proposed to abolish Angel Tax. Some social media users appreciated the move. Angel Tax applies to capital raised by unlisted companies from Indian investors when shares are issued at prices higher than the company's fair market value. The excess amount is treated as income and taxed.
