Budget 2024 promotes New income tax regime; offers new tax slabs as sop
By TIOL News Service
NEW DELHI, JULY 23, 2024: IN strong attempt to promote the new Income Tax regime, the Government announced several attractive benefits to provide tax relief to salaried individuals and pensioners opting for the new tax regime were announced by the Union Finance and Corporate Affairs Minister Ms Nirmala Sitharaman while presenting the Union Budget 2024-25 in the Parliament today.
Finance Minister proposed to increase the standard deduction for salaried employees from Rs 50,000 to Rs 75,000. Also, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000 under the new tax regime. This will provide relief to about four crore salaried individuals and pensioners.
Ms Sitharaman proposed to revise the tax rate structure in the new tax regime, as follows:
Income Range
|
Tax rate applicable
|
Rs 0 - 3 Lakhs |
Nil |
Rs 3 - 7 Lakhs |
5% |
Rs 7-10 Lakhs |
10% |
Rs 10 - 12 Lakhs |
15% |
Rs 12 - 15 Lakhs |
20% |
Above Rs 15 Lakhs |
30% |
The Government also stated that the new tax rates would result in savings of Rs 17500/- for the salaried class of taxpayers, who choose to file their Income Tax Returns under the new tax regime.
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