Income Tax Budget 2024 Highlights: Sitharaman raises standard deduction limit; introduces 3 tax slabs; increases capital gain tax

Written By: Shaghil Bilali Updated on: July 23, 2024, 06.07 PM IST

Income Tax Slabs 2024-25 Budget 2024 Highlights: 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.

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.

From 97.75% to 30%: How income tax slabs have changed in India since independence

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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. 

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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.

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    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

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    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.

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    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.

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    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

  • Income Tax Slabs 2024-25 Budget 2024 Live: What Nirmala Sitharaman says on job front in her speech

    She says that Budget for Financial Year will provide a total of Rs 1.48 lakh crore jobs for education and employment and skill.

  • Income Tax Slabs 2024-25 Budget 2024 Live: What Nirmala Sitharaman says in budget presentation

    In her speech, finance minister says that PM Garib Kalyan Ann Yojna was extended for 5 years benefiting 80 crore people across the county. 

  • Income Tax Slabs 2024-25 Budget 2024 Live: Nirmala Sitharaman starts budget presentation

    After Lok Sabha speaker Om Birla started Parliament proceedings, finance minister Nirmala Sitharaman has started her budget speech. Its is her record seventh consecutive budget.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Nirmala Sitharaman and PM Modi reach Parliament

    Union Budget 2024 has got approval from the cebinet. Finance Minister Nirmala Sitharaman and Prime Minister Narendra Modi have reached the Parliament. Sitharaman will start her budget speech shortly.  

  • Income Tax Slabs 2024-25 Budget 2024 Live: New tax regime announcement by Nirmala Sitharaman in 2020

    A new tax regime was introduced in the year. Taxpayers could now choose between the old and new tax regimes. The tax regime was made a default setting for new taxpayers in 2023.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Income tax slab revision by Nirmala Sitharaman in 2019-20

    She announced that taxpayers with income below Rs 5,00,000 would remain tax-free and enjoy the tax benefits of a rebate of Rs 12,500. However, there was no change in tax slabs.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Threshold limit changed by Piyush Goyal in 2018-19

    He increased the threshold limit of income tax to Rs 5 lakh from the earlier limit of Rs 2.50 lakh.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Income tax slab revision by Arun Jaitley in 2017-18

    This time, income between Rs 2.50 lakh and Rs 5 lakh was brought under 5 per cent income tax bracket from earlier 10 per cent. The rebate under Section 87A of the Income-tax Act, 1961 (which had been given to people earning up to Rs 5 lakh) was reduced to Rs 2,500 from Rs 5,000 for people earning between Rs 2.50 lakh and Rs 3.50 lakh.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Arun Jaitley revises income tax slab in 2014-15

    Jaitley replaced the wealth tax with a surcharge of 2 per cent on the super-rich taxpayers with a taxable income above Rs 1 crore. As a result of this, taxpayers were not required to file a wealth tax return from the Assessment Year 2016–17 onward.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Pranab Mukherjee revises tax slabs in 2012-13

    In the budget, he announced that those whose earnings are up to Rs 2 lakh annually were not supposed to pay tax. There was a 10 per cent tax levied for earners in the range of Rs 2 lakh and Rs 5 lakh. Those earning between Rs 5 lakh and Rs 10 lakh would pay a tax of 20 per cent and those earning above Rs 10 lakh would be paying 30 per cent tax.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Pranab Mukherjee changes income tax slabs in 2010-11

    In the budget he presented, there was no tax for those earning up to Rs 1.60 lakh; taxpayers earning between Rs 1.60 lakh and Rs 5 lakh were to pay 10 per cent tax. On the other hand, in the range of Rs 5 lakh to Rs 8 lakh, the tax was 20 per cent. For people earning over Rs 8 lakh, the tax was 30 per cent.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Income tax slab revision by P. Chidambaram in 1997-98

    P Chidambaram presented a 'Dream Budget', in which he kept the shifted slabs of 15, 30, and 40 per cent to 10, 20, and 30 per cent. The first slab of 10 per cent was for the Rs 40,000-Rs 60,000 income group; 20 per cent tax was for the Rs 60,000-Rs 1.50 lakh income group; and 30 per cent for income above Rs 1.50 lakh. Other than that, the standard deduction limit was increased to Rs 20,000 for all salaried taxpayers.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Manmohan Singh revised income tax slab in 1992-93

    Manmohan Singh cut down the number of tax slabs to the lowest-ever at three. For income from Rs 30,000 to Rs 50,000, the slab was 20 per cent, for Rs 50,000 and Rs 1 lakh, the tax rate was 30 per cent, and 40 per cent was for those earning above Rs 1 lakh.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Finance Minister Nirmala Sitharaman's schedule for July 23, 2024

    Around 8.40 am in the morning, the Finance Minister will leave her house and reach the Finance Ministry.

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    9 am: Photo-op with the Ministry's team that prepared the budget, then she will leave for the President's approval.

    10 am: Finance Minister and Minister of State enter Parliament with the budget (photo)

    Approval of the budget in the cabinet meeting and

    11 am: Finance Minister will present the budget

    Around 1 pm: PM Modi's reaction on the budget

    3 pm: Press conference with the Finance Minister and the team after the budget

  • Income Tax Slabs 2024-25 Budget 2024 Live: VP Singh revised income tax slabs in 1985-86

    VP Singh, who went on to become India's Prime Minister later, decreased the number of income tax slabs from eight to four. Taxpayers earning less than Rs 18,000 were kept out of tax. On Rs 18,001 to Rs 25,000, a 25 per cent income tax was fixed; for the Rs 25,001 to Rs 50,000 income group, tax was fixed at 30 per cent. On Rs 50,001 to Rs 1 lakh income, it was 40 per cent, while for income above Rs 1 lakh, it was 50 per cent, which earlier used to be 61.87 per cent.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Income tax slab revision by YB Chavan in 1974-75 budget

    Finance minister YB Chavan cut the maximum marginal rate from 97.75 per cent (the highest-ever) to 75 per cent. While there was no income tax for taxpayers earning up to Rs 6,000, a 70 per cent marginal rate of basic income tax was introduced on the income slab over Rs 70,000 a year. The highest tax slab was 77 per cent.

  • Income Tax Slabs 2024-25 Budget 2024 Live: History of tax slab changes in India after independence

    The first income tax Income tax slab revision was done by John Mathai in 1949-50, when the then finance minister John Mathai reduced tax on incomes up to Rs 10,000 by a quarter of an anna in two slabs. In the first slab, he reduced it from one anna to nine pies, and in the second tax slab, he reduced it from two annas to one nine pies. At that time, one anna was equal to Rs 1/16, while Rs 1 had 192 pies. 

  • Income Tax Slabs 2024-25 Budget 2024 Live: Pranab Mukherjee presented eight budgets

    Former India President Pranab Mukherjee has also been the finance minister of India in different durations. During that time, he presented budget eight times. He presented budget from 1982-1984 and 2009 to 2012.

  • Income Tax Slabs 2024-25 Budget 2024 Live: P Chidambaram presented nine budgets

    P Chidambaram presented nine budgets overall, but he also never presented seven budgets in a row. He presented budgets from 1996-1998, 2004-2008, and 2013-14. 

  • Income Tax Slabs 2024-25 Budget 2024 Live: Nirmala Sitharaman to beat Morarji Desai's record

    She will beat the record of the most consecutive budget of Morarji Desai. Desai presented budgets from 1959 to 1963 and 1967 to 1969. But he didn't present seven budgets in a row.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Nirmala Sitharaman to present a record budget

    Nirmala Sitharaman will become the finance minister with most number of budgets when she presents her seventh budget (Union Budget 2024) on Tuesday (July 23, 2024). 

     

  • Income Tax Slabs 2024-25 Budget 2024 Live: What are the current income tax slabs?

    In the new income tax regime, on income above Rs 15,00,000, the tax rate is Rs 1,50,000 plus 30 per cent above Rs 15,00,000. 

  • Income Tax Slabs 2024-25 Budget 2024 Live: What are the current income tax slabs?

    In the new income tax regime, from Rs 12,00,000 to Rs 15,00,000 annual income, the tax rate is Rs 90,000 plus 20 per cent above Rs 12,00,000. 

  • Income Tax Slabs 2024-25 Budget 2024 Live: What are the current income tax slabs?

    In the new income tax regime, from Rs 900,000 to Rs 12,00,000, income is taxed at Rs 45,000 plus 15 per cent above Rs 9,00,000. 

  • Income Tax Slabs 2024-25 Budget 2024 Live: What are the current income tax slabs?

    In the new income tax regime, from Rs 600,000 to Rs 900,000, the tax rate is Rs 15,000 plus 10 per cent above Rs 600,000.

  • Income Tax Slabs 2024-25 Budget 2024 Live: What are the current income tax slabs?

    In the new income tax regime, there is no income tax on up to Rs 3,00,000 in annual income. From Rs 3,00,000 to Rs 6,00,000, the tax rate is five per cent above Rs 300,000.

  • Income Tax Slabs 2024-25 Budget 2024 Live: What are the current income tax slabs?

    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.  

     

  • Income Tax Slabs 2024-25 Budget 2024 Live: What are the current income tax slabs?

    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. 

  • Income Tax Slabs 2024-25 Budget 2024 Live: What are the current income tax slabs?

    As per the Income Tax (I-T) Department website, in the old tax regime slab, there is no income tax till an annual income of Rs 2.50 lakh. 

  • Income Tax Slabs 2024-25 Budget 2024 Live: Will Nirmala Sitharaman change tax slabs in Union Budget 2024?

    The old tax regime has four slabs. The last time they were revised was in Year 2012-13. Taxpayers will fix their gaze on the finance minister's Union Budget 2024 speech to see if she makes any change in income tax slabs.

  • Income Tax Slabs 2024-25 Budget 2024 Live: Will Nirmala Sitharaman change tax slabs in Union Budget 2024?

    At present, taxpayers can choose from the old tax regime and the new tax regime. From Financial Year, the new tax regime has been made as a default option for new taxpayers. However, they can still choose the old tax regime.     

  • Income Tax Slabs 2024-25 Budget 2024 Live: Will Nirmala Sitharaman change tax slabs in Union Budget 2024?

    Welcome to Zee Business' income tax slab live blog. Here, we will give you live updates of income tax-related and other important announcements from the budget speech of finance minister Nirmala Sitharaman, who is set to present a record seventh budget on Tuesday (July 23, 2024).   

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