Union Budget 2024: What is the New Income Tax Slab?

Union Budget 2024 was announced by FM today and here are all the details about Income tax slabs that you need to know

Date:

Finance Minister, Nirmala Sitharaman has announced that there will be no changes in the new regime of income tax slab which was introduced under the 2023-2024 budget. People were hoping for a few tweaks but it seems that any possible change would only come after the Lok Sabha elections which are due to be held in April and May this year. Let’s find out in detail about the new income tax regime.

Union Budget 2024: What is the New Income Tax Slab?

Income Tax Slabs 2024-25 New Tax Regime

Income Range in INRTax Rate %
Up to 3 LakhNil
3,00,001 to 6,00,0005
6,00,001 to 9,00,00010
9,00,001 to 12,00,00015
12,00,001, to 15,00,00020
Above 15 Lakh30
   

The income tax rates for the financial year 2024-25 under the new tax regime or the concessional tax regime (CTR) are outlined in the table above. These rates, revised by Finance Minister Nirmala Sitharaman in Budget 2023, are applicable to individuals of all age groups.

Income Tax Rebate Under New Regime

In last year’s Union Budget, the eligibility for rebate under the Concessional Tax Regime (CTR) was extended to income up to Rs 7,00,000, offering a tax relief of up to Rs 25,000. Additionally, marginal relief was introduced for resident individuals with a net taxable income surpassing Rs 7 lakh, where the incremental income tax liability exceeds the incremental income beyond Rs 7 lakh.

Also read: Union Budget 2024: FM Sitharaman’s Bold Move for a Greener, Smarter Budget Presentation!

Difference Between New and Old Tax Regime

The new tax regime, initiated in Union Budget 2020, brought about alterations in tax slabs, offering taxpayers concessional tax rates. However, opting for this regime means forgoing several exemptions and deductions such as HRA, LTA, 80C, 80D, and others. In Union Budget 2023, the government introduced significant changes to incentivize taxpayers to embrace the new regime. These include:

  • Higher tax rebate limit: The full tax rebate is now applicable to incomes up to ₹7 lakhs, compared to ₹5 lakhs in the old tax regime. Consequently, taxpayers with incomes up to ₹7 lakhs will not be liable to pay any tax under the new tax regime.

Before the introduction of the new regime, the old regime prevailed, offering over 70 exemptions and deductions, including HRA and LTA, which could reduce taxable income and lower tax payments. Notably, Section 80C stands out as one of the most popular and generous deductions, allowing for a reduction of taxable income up to Rs. 1.5 lakh.

Financial Lessons from Ramayana: Lord Ram’s Financial Teachings for Modern Investors

In the epic tale of the Ramayana, Lord Ram emerges not only as a divine figure but also as a beacon of wisdom, offering...

Union Budget 2024: FM Sitharaman’s Bold Move for a Greener, Smarter Budget Presentation!

In a groundbreaking move towards digital governance, Finance Minister Nirmala Sitharaman is set to present the 2024 Interim Union Budget on February 1, marking...

Unlocking Tax Benefits for Ayodhya Ram Mandir Donations: A Guide to Claiming Deductions in Your ITR

In the wake of the 'Pran Pratishtha' ceremony for Ram Lalla's idol, the global outpouring of donations for the Ayodhya Ram Mandir is witnessing...

Related articles

The Case for Higher Standard Deduction from the Union Budget 2021

January 27, 2021: In July 2019, the finance minister Nirmala Sitharaman had presented her union budget, which was...

Revised Income Tax Slab: No Tax for People With Annual Income up to Rs 7 Lakh

The Finance Minister Nirmala Sitharaman has made a major announcement in the 2023 Budget, regarding the revision of...

For the Very First Time Taapsee Pannu Shared the Details About I-T Raids: ‘Not So Sasti’ Anymore

Recently, Actress Taapsee Pannu opened about 3 days of an intense raid that took place at her property...

Tax Reforms: Highlights From PM Modi’s Speech On Faceless Taxation

Prime Minister Narendra Modi on Thursday brought tax reforms emphasized on 'Faceless Taxation', the role of tax compliance,...

Why NRIs Enjoy Tax Benefits on Mutual Funds in UAE

Non-Resident Indians (NRIs) residing in the United Arab Emirates (UAE) enjoy certain tax benefits when investing in mutual...

Union Budget 2024: Key Announcements That Will Benefit You

Finance Minister Nirmala Sitharaman presented the interim budget for the fiscal year 2024-25 on February 1, 2024. This...

Union Budget 2024: FM Sitharaman’s Bold Move for a Greener, Smarter Budget Presentation!

In a groundbreaking move towards digital governance, Finance Minister Nirmala Sitharaman is set to present the 2024 Interim...

Unlocking Tax Benefits for Ayodhya Ram Mandir Donations: A Guide to Claiming Deductions in Your ITR

In the wake of the 'Pran Pratishtha' ceremony for Ram Lalla's idol, the global outpouring of donations for...