Budget 2025 for Investors: Invest in mutual funds, stock market, Nirmala Sitharaman gave this gift in the budget..

Saturday 1 February 2025, this day is now registered in the history of the country forever. The reason for this is that this time Finance Minister Nirmala Sitharaman has directly increased the limit of income tax-free income by 5 lakhs in the budget. Under the new tax regime, now income of Rs 12 lakh instead of 7 lakh will be tax-free in the country. Along with this, people will also get the benefit of a standard deduction of Rs 75,000. But what about your savings, have you got any benefit in the budget for investing in mutual funds and the stock market?

Finance Minister Nirmala Sitharaman has not said anything directly for those investing in stock market and mutual funds in her budget speech. But the changes she has talked about regarding TDS and TCS, these investors are definitely going to get the benefit of it.

TDS deduction limit increased

In the proposals of Budget 2025, the government has increased the threshold limit of TDS on income from dividend on the amount invested in the stock market from Rs 5,000 to Rs 10,000. Similarly, the government has also increased the threshold limit of TDS on income from NAV units purchased from mutual funds from Rs 5,000 to Rs 10,000.

This simply means that the tax liability of those investing in the stock market will be reduced, which will encourage them to invest in the market. To understand it in simple language, earlier if an investor's income from dividends was Rs 5,000, then he had to pay TDS on income above that. Now this limit has become Rs 10,000. That is, now the investor will have to pay 10 percent TDS only if the income from the stock market or mutual fund dividend is more than Rs 10,000.

Keep in mind, that the government has only changed the limit of TDS. It has nothing to do with your income tax. On capital gains from the stock market or mutual funds, you will have to pay income tax as per your tax slab as before.

Capital gain rules will remain as before

In the budget, the government has not made any changes in the rules of capital gain tax. These will remain the same as the government announced in the budget of July 2024. Then the government reduced the short-term capital gain tax to 15 percent. While the long term capital gain tax was reduced from 20 percent to 12.5 percent. However, the benefit of indexation was abolished in this. At the same time, income of Rs 1.25 lakh instead of Rs 1 lakh from capital gain was made tax-free.

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