Finance Minister Nirmala Sitharaman has unveiled the Budget 2024. In this regard, the Finance Minister has provided significant relief to taxpayers. The Finance Minister has revealed new tax slabs under the new administration. Salary employees will save up to Rs 17,500 in income tax under the new regime. The Finance Minister has also increased the standard deduction limit for salaries and pensioners. However, Finance Minister Nirmala Sitharaman has not changed the tax slab or rate of the previous tax regime.
New Income Tax Slab 2024
The tax rate structure will look something like this in the new tax regime… –
- No tax from 0 to Rs 3 lakh.
- The tax rate is 5% from Rs 3 lakh to Rs 7 lakh.
- The tax rate is 10% from Rs 7 lakh to Rs 10 lakh.
- The tax rate is 15% from Rs 10 lakh to Rs 12 lakh.
- The tax rate is 20% from Rs 12 lakh to Rs 15 lakh.
- Above Rs 15 lakh, the tax rate is 30%.
Salaried employees will save up to Rs 17500 under the new tax structure.
Standard Deduction Hike
Concerning personal income tax rates, two announcements have been made for those who choose the new tax regime. First, it has been proposed that the standard deduction ceiling for paid employees be increased from Rs 50000 to Rs 75000. Simultaneously, it has been proposed to raise the deduction on family pension for pensioners from Rs 15000 to Rs 25000.
According to the Finance Minister, the new tax regime will help four crore salaried individuals and pensioners through the standard deduction.
Income Tax Act will be examined
While presenting the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman stated that the government will develop a standard operating procedure (SOP) for TDS default. The settlement for such offenses shall be streamlined and rationalised. She stated that two tax exemption systems for charity trusts would be combined into one.
Furthermore, the streamlined tax system accounted for 58% of total tax revenue in fiscal year 2022-23. Sitharaman stated in the Lok Sabha that more than two-thirds of the people have benefited from the new income tax scheme. The Finance Minister stated that DPI apps will be built for credit, e-commerce, education, health, law, MSME service delivery, and urban government.