Revised Tax Slabs And Increased Standard Deduction Of Rs 25,000 Announced

In the Union Budget 2024, Finance Minister Nirmala Sitharaman improved the new income tax regime by increasing the standard deduction from Rs 50,000 to Rs 75,000, resulting in a rise of Rs 25,000. This adjustment is expected to save salaried individuals Rs 17,500 under the new tax regime. Furthermore, the Finance Minister revised several tax slabs.

#WATCH | On personal income tax rates in new tax regime, FM Sitharaman says, "Under new tax regime, tax rate structure to be revised as follows - Rs 0-Rs 3 lakh -Nil; Rs 3-7 lakh -5% ; Rs 7-10 lakh-10% ; Rs 10-12 lakh-15%; 12-15 lakh- 20% and above Rs 15 lakh-30%." pic.twitter.com/zQd7A4OsnT

— ANI (@ANI) July 23, 2024

The revised income tax slabs are now as follows: income up to Rs 3 lakh is taxed at 0%, income between Rs 3 lakh and Rs 7 lakh is taxed at 5%, income between Rs 7 lakh and Rs 10 lakh is taxed at 10%, income between Rs 10 lakh and Rs 12 lakh is taxed at 15%, income between Rs 12 lakh and Rs 15 lakh is taxed at 20%, and income exceeding Rs 15 lakh is taxed at 30%.

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Previously, under the new income tax regime, income up to Rs 3 lakh was tax-free, income from Rs 6 lakh to Rs 9 lakh was taxed at 10%, income from Rs 9 lakh to Rs 12 lakh was taxed at 15%, income from Rs 12 lakh to Rs 15 lakh was taxed at 20%, and income above Rs 15 lakh was taxed at 30%.

Specifically, the changes affect three slab categories: the slab for income over Rs 3 lakh to Rs 6 lakh, previously taxed at 5%, is now Rs 3 lakh to Rs 7 lakh; the slab for income from Rs 6 lakh to Rs 9 lakh, previously taxed at 10%, is now Rs 7 lakh to Rs 10 lakh; and the slab for income over Rs 9 lakh to Rs 12 lakh, previously taxed at 15%, is now Rs 10 lakh to Rs 12 lakh.