Budget 2024: New income tax slabs
As per the Union Budget for the financial year 2024-25 presented by Finance Minister Nirmala Sitharaman on July 23, the standard deduction has been proposed to be increased from Rs 50,000 to Rs 75,000, signaling a beneficial change for the middle class.
Additionally, the tax slabs have been revised: Those earning up to Rs 3 lakh per annum, instead of the Rs 2.5 lakh earlier, need not pay any income tax. The maximum tax of 30 per cent of income, under the new tax regime, needs to be paid by those earning above Rs 15 lakh per annum, instead of the Rs 10 lakh earlier.
Tax slabs under the New Tax Regime:
- Up to Rs 3 lakh: Nil
- Rs 3,00,001 to Rs 7 lakh: 5%
- Rs 7,00,001 to Rs 10 lakh: 10%
- Rs 10,00,001 to Rs 12 lakh: 15%
- Rs 12,00,001 to Rs 15 lakh: 20%
- Above Rs 15 lakh: 30%
Tax slabs under the Old Tax Regime
- Up to Rs 2.5 lakh: Nil
- Rs 2,50,001 to Rs 5 lakh: 5%
- Rs 5,00,001 to Rs 10 lakh: 20%
- Above Rs 10 lakh: 30%
