What is the standard deduction limit under the New Tax Regime for salaried individuals?

The standard deduction limit has been increased from ₹50,000 to ₹75,000.

What is the difference between the Old Tax Regime and the New Tax Regime?

The Old Tax Regime offers higher tax rates with various deductions and exemptions, whereas the New Tax Regime offers lower tax rates but without deductions and exemptions.

Can taxpayers choose between the Old and New Tax Regimes?

Yes, taxpayers have the option to choose between the Old Tax Regime and the New Tax Regime based on their financial situation and preferences.

How does the New Tax Regime benefit taxpayers?

The New Tax Regime simplifies the tax structure and provides lower tax rates, making it attractive for those who prefer a straightforward taxation system without claiming multiple deductions.

What is the main objective of introducing the New Tax Regime?

The main objective is to simplify the tax system, encourage more individuals to pay taxes, and make taxation more appealing to the younger generation.

What is the difference between the Old Tax Regime and the New Tax Regime?

The Old Tax Regime offers higher tax rates with various deductions and exemptions, whereas the New Tax Regime offers lower tax rates but without deductions and exemptions.

Can taxpayers choose between the Old and New Tax Regimes?

Yes, taxpayers have the option to choose between the Old Tax Regime and the New Tax Regime based on their financial situation and preferences.

How does the New Tax Regime benefit taxpayers?

The New Tax Regime simplifies the tax structure and provides lower tax rates, making it attractive for those who prefer a straightforward taxation system without claiming multiple deductions.

What is the main objective of introducing the New Tax Regime?

The main objective is to simplify the tax system, encourage more individuals to pay taxes, and make taxation more appealing to the younger generation.

Home

Schemes

Services

Community

About Us

Union Budget 2024: Revised Income Tax Slabs Under New Regime by FM Sitharaman

Alankar Mishra

Author

Updated: 28-01-2025 at 6:27 AM

Union Budget 2024: Revised Income Tax Slabs Under New Regime by FM Sitharaman

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.
Establishment of ten thousand bioresearch centres.
Supporting natural farming practices that will benefit crore farmers over the next two years.
Development of large vegetable production and supply chain clusters.
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
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.

Frequently Asked Questions