Finance Minister Nirmala Sitharaman unveiled significant modifications to the income tax regime in the Union Budget 2024. The revised tax slabs and deductions are aimed at providing relief to taxpayers and boosting disposable income.
The Finance Minister announced an increase in the standard deduction from Rs 50,000 to Rs 75,000 under the new tax regime. This change is expected to result in annual tax savings of up to Rs 17,500 for salaried employees.
Revised Income Tax Slabs for FY25:
Income up to Rs 3 lakh: 0% tax
Income from Rs 3 lakh to Rs 7 lakh: 5% tax
Income from Rs 7 lakh to Rs 10 lakh: 10% tax
Income from Rs 10 lakh to Rs 12 lakh: 15% tax
Income from Rs 12 lakh to Rs 15 lakh: 20% tax
These adjustments aim to simplify the tax structure and provide more disposable income to taxpayers. The lowest tax slab remains unchanged, with no tax on income up to Rs 3 lakh.
In addition to the changes in the tax slabs, the government has proposed an increase in the tax deduction on family pension for pensioners, raising it from Rs 15,000 to Rs 25,000. This move is expected to provide additional financial relief to pensioners.
The new tax regime is designed to be more attractive, offering higher deductions and more favorable tax rates to encourage taxpayers to switch from the old regime.
Finance Minister Sitharaman emphasized that these changes reflect the government’s commitment to easing the tax burden on individuals and promoting economic growth.
