Union Budget 2024: Standard deduction limit increased from Rs 50,000 to Rs 75,000 in new tax regime; 3 new slabs introduced in new regime
Standard Deduction Limit and New Tax Slabs: In her Budget 2024 speech on Tuesday (July 23, 2024), 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 regime. The government hasn't made any changes in the old tax regime.
Standard Deduction Limit and New Tax Slabs: In her Budget 2024 speech on Tuesday (July 23, 2024), 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 regime. The government hasn't made any changes in the old tax regime. Know what are the announcements related to tax slabs that she made during her speech on Tuesday. Also know, how much tax you can save under the new tax regime after Tuesday's slab changes.
Photos: Unsplash/Pixabay
Standard deduction limit increased
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.
New tax slabs
Three new tax slabs in the new tax regime have been announced. Rs 3 lakh-7 lakh, Rs 7 lakh-10 lakh, and Rs 10 lakh-Rs 12 lakh are the new slabs.
They have replaced Rs 3 lakh-Rs 6 lakh, Rs 6 lakh-Rs 9 lakh, and Rs 9 lakh-Rs 12 lakh slabs.
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Tax on up to Rs 3 lakh income
Like earlier, there will be no tax up to Rs 3 lakh annual income in the new tax regime.
Tax on income up to Rs 3 lakh-Rs 7 lakh
There will be 5% tax on income up to Rs 3 lakh-Rs 7 lakh in the new tax regime.
Tax on income up to Rs 7 lakh-Rs 10 lakh
There will be 10% tax on income up to Rs 7 lakh-Rs 10 lakh in the new tax regime.
Tax on income up to Rs 10 lakh-Rs 12 lakh
There will be 15% tax on income up to Rs 10 lakh-Rs 12 lakh in the new tax regime.
Tax on income up to Rs 12 lakh-Rs 15 lakh
There will be 20% tax on income up to Rs 12 lakh-Rs 15 lakh in the new tax regime.
Tax on income up to Rs 12 lakh-Rs 15 lakh
There will be 30% tax on income above Rs 15 lakh in the new tax regime.
Will you save tax after slab changes?
In a tweet, the finance ministry claims that one can save up to Rs 17,500 under the new tax regime after slab changes on Tuesday.