Income Tax Budget 2024 Highlights: Sitharaman raises standard deduction limit; introduces 3 tax slabs; increases capital gain tax
Income Tax Budget 2024 Highlights: In her budget speech on Tuesday (July 23, 2024), finance Minister Nirmala Sitharaman increased the standard deduction income tax limit from Rs 50,000 to Rs 75,000 in the new tax regime. She has also introduced three new tax slabs in the new tax regime. The three new tax slabs that have been announced are Rs 3 lakh-7 lakh, Rs 7 lakh-10 lakh, and Rs 10 lakh- Rs 12 lakh. They have replaced Rs 3 lakh-Rs 6 lakh, Rs 6 lakh-9 lakh, and Rs 9 lakh-Rs 12 lakh.
Tax Relief and Revised Tax Slabs in New Tax Regime
Income tax saving of up to ₹ 17,500/- for salaried employee in new tax regime
#IncomeTax Relief for around Four Crore Salaried Individuals and Pensioners
Standard deduction for salaried employees to be increased… pic.twitter.com/2m7pPRmzgP
— PIB India (@PIB_India) July 23, 2024
Earlier, taxpayers following the old tax regime and the new tax regime were eagerly waiting if the finance minister would raise income tax slabs for Financial Year 2024–25. Particularly, the old tax slab was last revised in the financial year 2012–13. The new tax regime, on the other hand, was proposed during Union Budget 2020–21. In Budget 2023, the finance ministry made it a default choice for taxpayers. However, taxpayers can still choose the old tax regime.
ALSO READ | From 97.75% to 30%: How income tax slabs have changed in India since independence
As per the Income Tax (I-T) Department website, the old tax regime slabs, there is no income tax till an annual income of Rs 2.50 lakh. On an income of Rs 2,50,000 to Rs 500,000, there is a five per cent tax on income above Rs 250,000. On income from Rs 5,00,001 to Rs 10,00,000, the tax rate is Rs 12,500 plus 20 per cent above Rs 5,00,000. On income above Rs 10,00,000, the income tax rate is Rs 1,12,500 plus 30 per cent above Rs 10,00,000.
In the new tax regime, there is no tax up to Rs 3 lakh annual income; there will be 5% tax on income up to Rs 3-7 lakh; there will be 10% tax on income up to Rs 7-10 lakh; there will be 15% tax on income up to Rs 10-12 lakh; there will be 20% tax on income up to Rs 12-15 lakh; there will be 30% tax on income above Rs 15 lakh.
We will keep updating you on the Live Updates of Union Budget 2024. For Live updates, keep following!.
Income Tax Budget 2024 Highlights: In her budget speech on Tuesday (July 23, 2024), finance Minister Nirmala Sitharaman increased the standard deduction income tax limit from Rs 50,000 to Rs 75,000 in the new tax regime. She has also introduced three new tax slabs in the new tax regime. The three new tax slabs that have been announced are Rs 3 lakh-7 lakh, Rs 7 lakh-10 lakh, and Rs 10 lakh- Rs 12 lakh. They have replaced Rs 3 lakh-Rs 6 lakh, Rs 6 lakh-9 lakh, and Rs 9 lakh-Rs 12 lakh.
Tax Relief and Revised Tax Slabs in New Tax Regime
Income tax saving of up to ₹ 17,500/- for salaried employee in new tax regime
#IncomeTax Relief for around Four Crore Salaried Individuals and Pensioners
Standard deduction for salaried employees to be increased… pic.twitter.com/2m7pPRmzgP
— PIB India (@PIB_India) July 23, 2024
Earlier, taxpayers following the old tax regime and the new tax regime were eagerly waiting if the finance minister would raise income tax slabs for Financial Year 2024–25. Particularly, the old tax slab was last revised in the financial year 2012–13. The new tax regime, on the other hand, was proposed during Union Budget 2020–21. In Budget 2023, the finance ministry made it a default choice for taxpayers. However, taxpayers can still choose the old tax regime.
ALSO READ | From 97.75% to 30%: How income tax slabs have changed in India since independence
As per the Income Tax (I-T) Department website, the old tax regime slabs, there is no income tax till an annual income of Rs 2.50 lakh. On an income of Rs 2,50,000 to Rs 500,000, there is a five per cent tax on income above Rs 250,000. On income from Rs 5,00,001 to Rs 10,00,000, the tax rate is Rs 12,500 plus 20 per cent above Rs 5,00,000. On income above Rs 10,00,000, the income tax rate is Rs 1,12,500 plus 30 per cent above Rs 10,00,000.
In the new tax regime, there is no tax up to Rs 3 lakh annual income; there will be 5% tax on income up to Rs 3-7 lakh; there will be 10% tax on income up to Rs 7-10 lakh; there will be 15% tax on income up to Rs 10-12 lakh; there will be 20% tax on income up to Rs 12-15 lakh; there will be 30% tax on income above Rs 15 lakh.
We will keep updating you on the Live Updates of Union Budget 2024. For Live updates, keep following!.
Latest Updates
Income Tax Slabs 2024-25 Budget 2024 Live: Taxation rule for bonds, debentures, and debt funds
Unlisted bonds and debentures, debt mutual funds and market linked debentures, irrespective of holding period, however, will attract tax on capital gains at applicable rates.
Income Tax Slabs 2024-25 Budget 2024 Live: New criteria introduced to be classified as long term
The finance minister said that listed financial assets held for more than a year would be classified as long term, while unlisted financial assets and all non-financial assets would have to be held for at least two years to be classified as long-term.
Income Tax Slabs 2024-25 Budget 2024 Live: Finance minister increases long term capital gains tax
Long term gains on all financial and non-financial assets will attract a tax rate of 12.5 per cent, says SItharaman during her speech on Tuesday.
Income Tax Slabs 2024-25 Budget 2024 Live: Finance minister increases capital gains tax rates
During her budget speech, Sitharman said that short term gains on certain financial assets should attract a tax rate of 20 per cent, while that on all other financial assets and all non-financial assets shall continue to attract the applicable tax rate. Earlier, the limit was 15 per cent.
Income Tax Slabs 2024-25 Budget 2024 Live: Sitharaman increases standard deduction limit; introduces 3 new slabs in new regime
In her Budget 2024 speech on Tuesday, finance minister Nirmala Sitharaman increased the standard deduction limit from Rs 50,000 to Rs 75,000 in the new tax regime. She also introduced three new tax slabs in the new tax regime. The three new tax slabs that have been announced are Rs 3 lakh-7 lakh, Rs 7 lakh-10 lakh, and Rs 10 lakh- Rs 12 lakh. They have replaced Rs 3 lakh-Rs 6 lakh, Rs 6 lakh-9 lakh, and Rs 9 lakh-Rs 12 lakh.
Income Tax Slabs 2024-25 Budget 2024 Live: What Nirmala Sitharaman says on capital gain tax
The government has done the simplification and rationalisation of capital gains tax.
Short-term gains on certain financial asets shall attract 20 per cent tax.
All other financial and non-financial assets shall attract tax as per the procedure
All long-term gains on all financial and non financial capital gains attract 12.50 per cent tax.
For lower income and middle income classes, she proposed to increase the limit of exemption of capital gains on certain financial assets to Rs 1.25 lakh.
Income Tax Slabs 2024-25 Budget 2024 Live: What FM says on PM Suryaghar Free Electricity Scheme
The finance minister says says that PM Suryaghar Free Electricity Scheme will be extended to 1 crore houses.
She proposal to provide relief in stamp duty on the registration in the name of women
The FM says that small nuclear power plants to be built in collaboration with private sector
On infra sector
About infra sector, she says investment equal to 3.4 per cent of GDP on infrastructure.
Viability gap funding is to increase private sector participation in infrastructure, she says.
On PM Gram Sadak Yojana
Sitharaman says the fourth phase of the PM Gram Sadak Yojana will be launched.
On flood prevention
About flood prevention in Bihar and Assam, she says Centre will provide assistance.
Financial assistance of Rs 11,500 crore for irrigation projects, she announces.
The FM says Centre will provide assistance to prevent landslides in Uttarakhand, and will also help to flood-affected people in Himachal Pradesh.
On religious tourism
About religious tourism, she says special schemes will be announced to promote religious tourism
On thermal power plant
The FM says NTPC, BHEL will set up super critical thermal power plants of 800 MW.
Income Tax Slabs 2024-25 Budget 2024 Live: What FM says on PM Urban Housing Plan, debt recovery, and offshore mining blocks
On PM Urban Housing Plan, she says that Rs 10 lakh crore have been announced. She says rules will be made to promote and regulate rental housing. States that reduce stamp duty will be encouraged, says the FM. The finance minister also announced a new policy for energy transition.
She says digital public infrastructure applications will be developed.
More tribunals will be opened for debt recovery and more NCLT tribunals will be opened under IBC, says the FM.
Framework for the redevelopment of cities to be announced soon, she says.
She says the government plans to auction offshore mining blocks.
A Critical Mineral Mission plan has been announced.
The FM says properties will be purchased abroad under Critical Mineral Mission.
Income Tax Slabs 2024-25 Budget 2024 Live: What Nirmala Sitharaman says on incentives to first-time workers
In her speech today, Finance Minister Nirmala Sitharaman said that first-time workers in all formal sectors will get one month's salary on entry into the work force. The one-month salary will be given through Direct Benefit Transfer (DBT), up to Rs 15,000, in three installments. For those with their first job, the benefit can be availed if their salary is less than Rs 1 lakh. As many as 2.1 lakh youth are expected to benefit from this, she says.
Income Tax Slabs 2024-25 Budget 2024 Live: What Sitharaman on PM Awas Yojana, MSMEs, Mudra Loan and e-commerce hubs
She has announced the construction of 3 crore new houses under PM Awas Yojana. She said Rs 3 lakh crore will be set aside for women-related schemes. She has approved 2.66 lakh crore for rural development, infrastructure.
She has announced of financing, regulatory changes to help MSMEs, adding a credit guarantee scheme for MSMEs in manufacturing. She says loans without collateral will be available under the MSME Credit Guarantee Scheme. Loans up to Rs 100 crore will be available under the MSME Guarantee Scheme, says the finance minister.
PSU banks to give loans to MSMEs after internal assessment, she says.
Amount the MUDRA loan limit, the FM has increased it from Rs 10 lakh to Rs 20 lakh. SIDBI will increase branches to help MSMEs, she says.
The government will create e-commerce export hub in collaboration with private sector, says Sitharaman, adding that Centre will bring a comprehensive scheme for the internship of youth. Internships to 1 crore youth in top 500 companies in 5 years will be provided, says the FM. Industrial parks will be developed in 100 cities
Income Tax Slabs 2024-25 Budget 2024 Live: What Nirmala Sitharaman says about agriculture
Finance minister says that special emphasis is on research to increase production in agriculture. Higher yielding varieties will be introduced, she announces. She further says varieties less affected by weather will be introduced. There will be provision of Rs 1.48 lakh crore for education and skilling. There will be special focus in the budget on infrastructure and manufacturing, she says, adding there will be special emphasis on research to increase production in agriculture.
As many as 109 varieties of 32 crops will be introduced, she says.
Work is going on in mission mode for pulses, oilseeds and cluster scheme will be introduced to increase the production of vegetables, says the finance minister.
She has announced a plan to become self-reliant in oilseed production.
A digital survey of Kharif crops will be done in 400 districts in FY25, she says, adding financial assistance will be given to increase shrimp production.
Income Tax Slabs 2024-25 Budget 2024 Live: What Nirmala Sitharaman says about northeastern states
She says the Purvodaya scheme will be made for the northeastern states. The Purvodaya scheme includes Bihar, Jharkhand, Odisha, and Andhra Pradesh. She announced expressways and highways worth Rs 26,000 crore for northeastern states.
Income Tax Slabs 2024-25 Budget 2024 Live: What Nirmala Sitharaman says about educaton loan
She says that as many as 15,000 loans will be given in 3 phases under the PM scheme. She has announced a loan scheme of Rs 10 lakh crore for higher education in the country. Sitharaman says 25,000 students will get 7.5 lakh loans at concessional rates every year.
Income Tax Slabs 2024-25 Budget 2024 Live: What Nirmala Sitharaman says about employement
The finance minister says that government will give incentives for providing employment. It will bring 3 incentive schemes for providing employment. Incentives will be given in 3 phases under the PM scheme. Working hostels will be built in collaboration with the industry, and 20 lakh youth will be given training for employment.
Income Tax Slabs 2024-25 Budget 2024 Live: What Nirmala Sitharaman says about student loan
Every year, as many as 25,000 students will get loan Rs 7.50 lakh loan