Budget 2024: Income Tax Rates For Individual Tax Payers To Be Reduced, Say Reports

As per reports in the media, FM Sitharaman may announce to reduce personal tax rate for individuals earning Rs 10 lakh per year.

New Delhi: Finance Minister Nirmala Sitharaman might offer the much needed sop to individual taxpayers in the full budget for 2024-25 that is expected to be presented in late July. 

The upcoming Budget, Sitharaman’s seventh consecutive budget, and the first of the Modi 3.0, is also expected to give priority to the development of agriculture and rural areas, reported news agency IANS.

A Reuters report quoting people in the know has said that Finance Minister may announce to reduce the income tax rates for a specific category of individual tax payers. It added that FM Sitharaman may also announce to reduce the income tax rates for individual taxpayers earning upto Rs 10 lakh annually.

As per the new tax regime, the following is the income tax slab for individual tax payers:

The New Tax Slabs-
Income Slabs                                      Tax Rates

Upto Rs 3 Lakh                                      NIL

Rs 3 Lakh- Rs 6 Lakh                            5%

Rs 6 Lakh- Rs 9 Lakh                            10%

Rs 9 Lakh- Rs 12 Lakh                          15%

Rs 12 Lakh- Rs 15 Lakh                         20%

Above Rs 15 Lakh                                  30%

On February 1 this year, Finance Minister Nirmala Sitharaman unveiled the Interim Budget in Parliament.

Sitharaman announced no changes in the income tax slab. Reading out her Interim Budget speech, FM said, "I wish to make an announcement to improve tax payer services. There are a large number of petty, non-verified, non-reconciled or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing anxiety to honest tax payers and hindering refunds of subsequent years. I propose to withdraw such outstanding direct tax demands up to twenty-five thousand rupees (Rs 25,000) pertaining to the period up to financial year 2009-10 and up to ten-thousand rupees (Rs 10,000) for financial years 2010-11 to 2014-15. This is expected to benefit about a crore tax-payers."