Budget 2024: Rs 3-7 lakh, Rs 7-10 lakh, and Rs 10-12 lakh slabs introduced in new regime; compare proposed changes with existing rates here

New Income Tax Slabs News: Finance Minister Nirmala Sitharaman's historic seventh back-to-back Budget on July 23, 2024, proposed three new income tax slabs under the new regime. As per the proposed changes, annual income of Rs 3,00,001-7,00,000 will fall in the tax bracket of 5 per cent, instead of the existing Rs 3,00,001-Rs 6,00,000, that of Rs 7,00,001-10,00,000 will be taxed at 10 per cent, instead of Rs 6,00,001-9,00,000, and Rs 10,00,001-12,00,000 at 15 per cent, instead of Rs 9,00,001-12,00,000. At the same time, the first Budget of the Narendra Modi 3.0 government proposes to keep the first tax slab of income up to Rs 3 lakh, and the highest slabs of incomes of Rs 12,00,001-Rs 15,00,000 and above Rs 15 lakh unchanged. 

New Income Tax Slabs | What has really happened?

All in all, out of the total six slabs in the new income tax regime, three have been changed and three left unchanged. 

Simply put, the finance minister has raised the upper end of the Rs 3,00,001-6,00,000 slab by Rs 1 lakh, widened the Rs 6,00,001-9,00,000 slab by Rs 1 lakh each from both ends, and raised the lower end of the Rs 9,00,001-12,00,000 slab by Rs 1 lakh. 

Now, look at the following table carefully:     

Standard Deduction: Big relief to taxpayers under new regime?

The Budget 2024 raises the standard deduction threshold, under the new tax regime, by 50 per cent to Rs 75,000. Standard deduction is a fixed sum of money that each salaried individual is allowed to deduct from their taxable income before calculating how much they owe.

Income Tax Slabs and Standard Deduction: How much income tax can you save?

"Similarly, deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000. This will provide relief to about four crore salaried individuals and pensioners," said the finance minister in her Budget speech.

"As a result of these changes, a salaried employee in the new tax regime stands to save up to Rs 17,500 in income tax," she added.