Indian Prime Minister Narendra Modi’s highly anticipated first budget of the third term has given some relief some higher taxes to overseas Indians. India Budget 2024 proposes a higher tax on certain capital gains for non-residents. But, the budget reduces tax on certain assets. The new tax rate will apply only on transfers made on or after July 23, 2024. Government officials said the effort brings parity between resident and non resident taxation structure. On higher taxes, long-term capital gains resulting on transfer referred to in section 115E is raised to 12.5% for certain assets. Long-term capital gains referred to in section 112A exceeding Rs 1, 25,000 will now be taxable at 12.5% instead of 10% from 23 July 2024. Short-term capital gains referred to in section 111A is hiked to 20% from 15%. Indexation benefit on sale of property has been removed, with new LTCG rate of 12.5% for capital gains on sale of property. Good news is that - a) long-term capital gains [not being long term capital gains referred to in clauses (33) and (36) of section 10] is reduced from 20% to 12.5%, and, b) long-term capital gains referred to in sub-clause (iii) of clause (c) of sub section (1) of section 112 of 10% will not be applicable for transfers on or after July 23, 2024. To bring parity of taxation between residents and non-residents, corresponding amendments to section 115AD, 115AB, 115AC, 115ACA and 115E are made to align the rates of taxation in respect of long-term capital gains proposed under section 112A and 112 and rates of short term capital gains proposed under section 111A. Also, there are various provisions of Tax Deduction at Source (TDS) with different thresholds and multiple rates between 0.1%, 1%, 2%, 5%, 10%, 20%, 30% and above. To improve ease of doing business and better compliance by taxpayers, the TDS rates are proposed to be reduced. However, no change would occur with respect to sections such as TDS on salary, TDS on virtual digital assets, TDS on winnings from lottery etc/ race horses, payment on transfer of immovable property and payments to non-residents, TDS rates for TDS on contracts etc.