New income tax slab. Finance Minister Nirmala Sitharaman has announced several important changes in the new tax structure in Budget 2024. These changes are aimed at providing relief to taxpayers and simplifying the tax system. Let's take a look at these announcements and the current tax structure.
Tax Rates in the New Tax Structure
Under the new tax structure, the tax rate structure has been revised as follows:
- 0-3 lakhs: Zero
- 3-7 lakhs: 5%
- 7-10 lakhs: 10%
- 10-12 lakhs: 15%
- 12-15 lakhs: 20%
- 15 Lakh and above: 30%
Under this new tax structure, salaried employees can save up to ₹17,500 in income tax.
Increase in standard deduction
The Finance Minister announced that the standard deduction will be increased from ₹50,000 to ₹75,000. This proposal will provide additional relief to taxpayers.
- Current standard deduction: ₹50,000
- New Standard Deduction: ₹75,000
Information on the old tax structure
Under the old tax structure, the tax rates were as follows:
- Upto Rs 2.5 Lakh: Zero
- 2.5-5 lakhs: 5%
- 5-10 lakhs: 20%
- 10 Lakh and above: 30%
Comparison of new and old tax structure
| Income (in ₹) | old tax structure | New tax structure |
|---|---|---|
| 0-2.5 lakhs | Zero | Zero |
| 2.5-3 lakhs | Zero | Zero |
| 3-5 lakhs | 5% | 5% |
| 5-7 lakhs | 20% | 5% |
| 7-10 lakhs | 20% | 10% |
| 10-12 lakhs | 30% | 15% |
| 12-15 lakhs | 30% | 20% |
| 15 Lakh and above | 30% | 30% |
Benefits of the new tax structure
The new tax structure will help salaried employees save income tax up to ₹17,500. The increase in standard deduction will also provide additional relief to taxpayers.
