The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, introduces notable changes to the income tax regime. The standard deduction has been increased from ₹50,000 to ₹75,000, providing additional relief to taxpayers. The new tax regime, aimed at simplifying the tax structure, offers revised slabs with no tax on income up to ₹3 lakh and a series of incremental rates up to a maximum of 30% for income above ₹15 lakh.
Key Changes in Tax Slabs:
- Income up to ₹3 lakh: No tax.
- ₹3 lakh – ₹5 lakh: 5% tax.
- ₹5 lakh – ₹7.5 lakh: 10% tax.
- ₹7.5 lakh – ₹10 lakh: 15% tax.
- ₹10 lakh – ₹12.5 lakh: 20% tax.
- ₹12.5 lakh – ₹15 lakh: 25% tax.
- Above ₹15 lakh: 30% tax.
Impact of Changes:
These adjustments aim to reduce the tax burden and compliance complexity for individuals, encouraging more taxpayers to switch to the new regime. The increased standard deduction benefits salaried individuals and pensioners, enhancing their disposable income and potentially boosting economic activity.
