2024 rolls in with a handful of tax tweaks that can make or break a new business. If you skip them, you might pay extra or miss out on deductions that could boost your cash flow. Let’s cut through the jargon and focus on what really matters for founders in Andhra Pradesh and across India.
Key Changes in Income Tax for 2024
First up, the personal income‑tax slabs stay the same, but the government has widened the standard deduction for salaried employees from ₹50,000 to ₹60,000. For a founder drawing a salary, that means a bit more tax‑free income each year.
More important for startups are the new limits on capital gains. Long‑term gains on listed equities now enjoy a 10% tax rate, down from 15% if you hold the shares for over a year. If you’re planning an early exit or a secondary sale, that lower rate could save you a lot.
The big headline is the addition of a “startup expense deduction” that lets you claim up to ₹5 lakh of qualifying R&D costs in the first three years. Expenses like prototype development, software licences, and patent filing now count as direct deductions, not just a separate credit.
Don’t forget the changes to Section 44ADA for professionals – the income‑presumption limit jumps to ₹9 lakh. If you’re a consultant or freelancer working with your startup, you can now enjoy a simpler tax filing process.
GST and Other Indirect Taxes in 2024
GST thresholds stay at ₹40 lakh for most services, but the government introduced a new exemption for low‑value e‑commerce sales under ₹2,000 per transaction. If your platform sells micro‑transactions, you may not need to register for GST until you cross the regular threshold.
Another shift is the accelerated input‑tax credit for green investments. Buying solar panels or energy‑efficient equipment qualifies for a 100% credit in the quarter of purchase, instead of the usual amortised schedule.
For exporters, the new export‑linked GST rebate raises the refund rate from 70% to 80% on eligible goods. That means a higher cash return when you ship Indian products to the US or Europe.
Lastly, the compliance calendar got a tweak: the GSTR‑3B filing deadline moves to the 15th of the following month, giving a short extra window for small traders.
Putting it all together, the 2024 tax landscape offers three clear actions: update your salary structure to capture the higher standard deduction, log every R&D expense for the new startup deduction, and review your GST registration status in light of the e‑commerce exemption. Ignoring these moves could cost you both money and time.
Take a few minutes this week to talk to your accountant, run a quick audit of your expenses, and adjust your filing calendar. A small effort now saves you headaches later, and keeps your startup on the fast track to growth.
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