Budget 2024 New Tax Regime: The Finance Minister has made changes in the tax slabs of the New Tax Regime. After this change, now the income of salaried taxpayers up to Rs 7.75 lakh will be tax free.
Finance Minister Nirmala Sitharaman presented the budget on Tuesday (July 23). The Finance Minister has tried to provide relief to the middle class and salaried class by announcing some changes in the income tax provisions in the budget announcement. Under this, the Finance Minister has made changes in the tax slabs of the New Tax Regime.
After this change, now the income of salaried taxpayers up to Rs 7.75 lakh will be tax free. However, no relief has been given in the Old Tax Regime. Under the new income tax system, the new tax slabs will be effective from April 1, 2024 (assessment year 2025-26).
Changes in the New Tax Regime Slab
| Old slab | Old Rate | New Slab | update rate |
| 0-3 Lakh | 0% | 0-3 Lakh | 0% |
| 3-6 Lakh | 5% | 3-7 Lakh | 5% |
| 6-9 Lakh | 10% | 7-10 Lakh | 10% |
| 9-12 Lakh | 15% | 10-12 lakhs | 15% |
| 12-15 lakhs | 20% | 12-15 lakhs | 20% |
| More than 15 lakhs | 30% | More than 15 lakhs | 30% |
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What are the benefits of the New Tax Regime?
- 5% tax on income of Rs 7 lakh
- 20 thousand tax at the rate of 5%
- 20 thousand rupees waived under section 87A
- Salaried person gets standard deduction benefit of Rs 75,000
- Salaried class’s income up to Rs 7.75 lakh will be tax free
Benefit of standard deduction
In fact, a proposal was made in the budget to increase the standard deduction by 50 percent to Rs 75,000 and to change the tax slabs under the new tax system. These announcements by the Finance Minister are being considered as an attempt to put some more money in the hands of employed people. This is expected to encourage consumption.
Finance Minister Nirmala Sitharaman said that the changes made in the budget can help employees adopting the new tax system save tax up to Rs 17,500. It has been proposed to increase the standard deduction limit for salaried employees from Rs 50,000 to Rs 75,000 per annum.
