Budget 2024 Highlights On Income Tax: Revised Tax Slab In New Tax Regime

Income tax slab for AY 2024-25 for salaried person : As per FM's announcement, following will be the new tax slab in the New Tax Regime

New Delhi: Bringing the much needed cheer to the salaried individuals, Finance Minister Nirmala Sitharaman on Tuesday announced revisions in the New Tax Regime.

As per FM's announcement, under new tax regime, tax rate structure will be revised as follows

- No tax up to Rs 3 lakh 

- 5% tax on income up to Rs 3-7 lakh 

- 10% tax on income up to Rs 7-10 lakh

- 15% tax on income up to Rs 10-12 lakh

- 20% tax on income up to Rs 12-15 lakh

- 30% tax on income above Rs 15 lakh

As a result of these changes, a salaried employee in the new tax regime stands to save up to Rs 17,500 in income tax, added the FM.

Meanwhile, the FM has also announced  sops for individuals opting for new tax regime. FM has announced to increase the standard deduction from Rs 50,000 to Rs 75,000.

"Coming to Personal Income Tax Rates, I have two announcements to make for those opting for the new tax regime. First, the standard deduction for salaried employees is proposed to be increased from ₹50,000/- to ₹75,000/-. Similarly, deduction on family pension for pensioners is proposed to be enhanced from ₹ 15,000/- to ₹ 25,000/-. This will provide relief to about four crore salaried individuals and pensioners," the FM said in her budget speech.

Amar Ambani, Executive Director, YES SECURITIES said barring the capital gains tax dampener for the investor community and removal of indexation benefit, the Union Budget was balanced and consistent in policy.

"I sense an even better budget next year, with the finance minister mentioning about a comprehensive review of the Income Tax Act to simplify taxation and reduce disputes, as well as a customs duty rate structure overhaul to correct inverted duty structures,” Ambani added.