Union Budget 2024: Revised Income Tax Slabs Under New Regime by FM Sitharaman
Updated: 28-01-2025 at 6:27 AM
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On Tuesday, the Finance Minister, Nirmala Sitharaman, presented the Union Budget 2024, which included notable changes to the income tax slabs of the New Tax Regime in a bid to give huge relief to people who are earning salaries and those who pay taxes. It is a strategy towards making taxation easier and increasing the number of taxpayers in India.
Revised Income Tax Slabs Under New Tax Regime
The revised tax slabs under the New Tax Regime
| Income Tax Slabs (Rs) | Income Tax Rate |
|---|---|
| 0-3 lakh | 0% |
| 3-7 lakh | 5% |
| 7-10 lakh | 10% |
| 10-12 lakh | 15% |
| 12-15 lakh | 20% |
| 15 lakh+ | 30% |
In addition to revising the tax slabs, the standard deduction limit for salaried individuals under the New Tax Regime has been increased from Rs 50,000 to Rs 75,000.
The Introduction Of The New Tax Regime
FM Sitharaman introduced the New Tax Regime in the Union Budget 2020-21. It was aimed at simplifying tax procedures and encouraging more people to pay taxes, especially the young generation who prefer spending rather than saving. In this regime, tax rates are lower but specific deductions and exemptions provided for under the Old Tax Regime are removed.
Comparison Between Old And New Tax Regimes
Historically, India has had a small number of taxpayers compared to its population. For example, in 2021-22 only 2.09 crore individuals filed their income tax returns which is around 2.2 percent of the voting population. In contrast, countries like the US and many European nations have over 50% of their populations paying taxes. The New Tax Regime came into force as part of an attempt to make taxation appealing and less complicated.
Old Tax Regime For Individuals Below 60 Years Of Age
| Income Tax Slabs (Rs) | Income Tax Rate |
|---|---|
| 0-2.5 lakh | 0% |
| 2.5-5 lakh | 5% |
| 5-10 lakh | 20% |
| 10 lakh+ | 30% |
Comparison Of Income Tax Slabs
A look at how the old and new regimes compare:
| Income Tax Slabs (Rs) | Old Tax Regime |
|---|---|
| 0-2.5 lakh | 0% |
| 2.5-3 lakh | 5% |
| 3-5 lakh | 5% |
| 5-6 lakh | 20% |
| 6-7 lakh | 20% |
| 7-9 lakh | 20% |
| 9-10 lakh | 20% |
| 10-12 lakh | 30% |
| 12-15 lakh | 30% |
| 15 lakh+ | 30% |
| New Tax Regime |--|--| |0% | | | 0% | |5%|--| | 5% | | | 5% | |10%|--| |10% | | |15% | | |20% | | |30% | |
Impact Of The Revised Tax Slabs
The changes declared in the Union Budget 2024 are likely to bring big relief to the salaried class as it will make the New Tax Regime more attractive. However, individuals can still choose between old and new regimes depending on their financial preferences or benefits.
Additional Announcements In The Union Budget 2024
In addition to the income tax changes, there were several important announcements made for different sectors in the Union Budget 2024:
-
₹1.52 lakh crore for agriculture plus allied sectors.
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Establishment of ten thousand bioresearch centres.
-
Supporting natural farming practices that will benefit crore farmers over the next two years.
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Development of large vegetable production and supply chain clusters.
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Financial assistance for shrimp breeding centres leading to increased exports via NABARD.
-
Kisan Credit Cards have been introduced in five states.
-
Release of 109 varieties across 32 crops by Bisa Sansthan Kendras.
-
Helping natural farmers with verification and branding
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Six crore farmers along with their land get included in the national farmer-land registry.
Conclusion
Union Budget 2024 makes important revisions geared towards simplifying the tax structure and providing relief to taxpayers. The revised New Tax Regime and focus on agriculture, women’s welfare, infrastructure development etc., shows a holistic approach towards economic growth and sustainability.
Wanna save Rs 17500 in tax then watch this video by Jaagruk Bharat explaining all details of this new tax regime under Budget 2024.
For more detailed information about the Union Budget 2024, visit the official government website.
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