Union Budget 2024-2025 presented by Finance Minister Nirmala Sitharaman on 23 July 2024, the new tax regime got better for the middle class in India. Standard deduction has been increased to Rs 75,000 from existing Rs 50,000. The tax slabs also changed with those falling in annual income Bracket of Rs 3-7 lakh require to pay 5 percent as tax. While those falling in Rs 7-10 lakh, Rs 10-12 lakh are required to pay 10 and 15 percent of their income as tax. Revision in the tax slabs in the New Regime will provide taxpayers with an extra opportunity to save Rs. 17,500 in taxes. Family pension deduction has been increased to Rs. 25,000 from Rs. 15,000.
Commenting on the new slab, Finance Minister, Sitharaman in a interview said its a relief for the middle class and they are going to have more money in hand. The Budget also proposed tax simplification measures including a complete review of the Income Tax Act, decriminalization of late payment of tax deducted at source (TDS) and the Vivaad Se Vishwas Scheme 2024 for settling direct tax disputes.
Finance Minister has also proposed to remove the indexation benefit permissible for calculation of any long-term capital gains in property, gold and other unlisted asset purchases. The capital tax gains on these assets have been proposed to be at 12.5 percent instead of 20 per cent.
| The New Income Tax Slabs – Budget 2024 | |||
| New Income tax slabs (Rs) | New Tax Rate (%) | Old Income tax slabs | Old Tax Rate |
| From 0 to 3 lakh | Nil | From 0 to 3 lakh | Nil |
| From 3 to 7 lakh | 5% | From 3 to 6 lakh | 5% |
| From 7 to 10 lakh | 10% | From 6 to 9 lakh |
10% |
| From 10 to 12 lakh | 15% | From 9 lakh to ₹ 12 lakh |
15% |
| From 12 to 15 lakh | 20% | From 12 to 15 lakh |
20% |
| More than 15 lakh | 30% | More than 15 lakh |
30% |
Post Disclaimer
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the TaxMitra has exercised reasonable efforts to ensure the veracity of information/content published, TaxMitra shall be under no liability in any manner whatsoever for incorrect information, if any.