Business

Budget 2024: New Tax Regime Slabs Revised and Standard Deductions Increased by ₹25,000

The normal tax deduction was raised from $50,000 to $75,000, according to Finance Minister Nirmala Sitharaman, and new tax regime slabs would be modified. However, the deduction will remain at ₹50,000 under the prior tax structure. According to Nirmala Sitharaman, the family pensioners’ deduction will rise from ₹15,000 to ₹25,000 under the new scheme.

According to her, this action will help four crore salaried people and pensioners.

The revised slabs are as follows:

Up to 3,00,000: Nil

From 3,00,001 to 7,00,000: 5%

From 7,00,001 to 10,00,000: 10%

From 10,00,001 to 12,00,000: 15%

From 12,00,001 to 15,00,000: 20%

Above 15,00,000: 30%

Nirmala Sitharaman stated that as a result, people who choose the new regime will save ₹17,500. In addition, the Finance Minister declared that the Income Tax Act of 1961 will undergo a thorough revision that would simplify its language, lessen ambiguity, and lower the likelihood of legal disputes.

As per the actions implemented over the years, Nirmala Sitharaman pledged to simplify the tax system for individual income tax payers. In the financial year 2023–2024, she stated that almost two thirds of personal tax payers have taken advantage of the new tax regime, reinforcing the government’s commitment on streamlining tax structures and regulations.

Also Read: After ‘Special Status’ Rejection, Centre Announces Major Infrastructure Boost for Bihar in Union Budget 2024

A Vivaad to Vishwas scheme 3.0 for 2024 was also announced by Nirmala Sitharamans.

Employees’ basic salary is now subject to a 14% rather than a 10% National Pension System (NPS) deduction from employers. As per the finance minister, this will be applicable to both private and public sector enterprises under the new administration.