Finance Minister Nirmala Sitharaman announced the revision of tax slabs under the new tax regime. While presenting the Union Budget 2024 in the Parliament, she also announced an increase of the standard deduction limit to Rs 75,000.
Similarly, the deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000. This will provide relief to about 4 crore salaried individuals and pensioners, FM said.
The government also announced that it will undertake a comprehensive review of the Income Tax Act to make it easy to read.
Here are full details about the regimes and their tax rates and how the new tax regime is different now;
In the Budget 2023, under the new tax regime, Finance Minister Nirmala Sitharaman increased the income tax exemption limit by Rs 50,000 to Rs 3 lakh and the rebate under Section 87A of the Income Tax Act, 1961, was also raised from Rs 5 lakh to Rs 7 lakh, meaning that those earning up to Rs 7 lakh do not have to pay any tax under the new regime.
Income Tax Rates for FY2023-24 (AY 2024-25):
| Income Tax Slab (In Rs) | Old Tax Regime | New Tax Regime | Updated New Tax Regime After Budget 2024 |
| 0-2,50,000 | 0% | 0% | 0% |
| 2,50,001-3,00,000 | 5% | 0% | 0% |
| 3,00,001-5,00,000 | 5% | 5% | 3-7 lakh- 5 % |
| 500,001-6,00,000 | 20% | 5% | 7-10 lakh- 10 % |
| 6,00,001-9,00,000 | 20% | 10% | 10-12 lakh- 15% |
| 9,00,001-10,00,000 | 20% | 15% | 12- 15 lakh- 20% |
| 10,00,001-12,00,000 | 30% | 15% | Above 15 lakh- 30% |
| 12,00,000-15,00,000 | 30% | 20% | |
| 15,00,0001 & Above | 30% | 30% |
Note: For senior citizens (above 60 years of age), the income tax under the old regime is exempt up to Rs 3,00,000; while for super senior citizens (above 80 years), income up to Rs 5,00,000 is exempt.
Apart from this, a health and education cess is levied at 4 per cent on income tax.
Taxpayers have the option to choose either the old tax regime or the new tax regime. The default scheme would be the new tax regime.
Under the new tax regime, a resident individual (whose net income does not exceed Rs 7 lakh) can avail rebate under section 87A. The amount of rebate is 100 per cent of income tax or Rs 25,000, whichever is lower.
Under the old tax regime, a resident individual taxpayer (whose net income is up to Rs 5 lakh) can avail rebate under section 87A. The amount of rebate is 100 per cent of income tax or Rs 12,500, whichever is lower.
Stay informed with our comprehensive coverage of Union Budget 2024. Get the latest on new income tax slab rates for AY 2024-25 in Income Tax Slabs Budget 2024 LIVE Updates . Track the impact of Budget 2024 on the stock market in Stock Market Budget Day 2024 LIVE Updates. Watch Union Budget LIVE Streaming here
