Revised Tax Slab for Taxpayers Under New Tax Regime in Union Budget 2024

In the Union Budget 2024, Finance Minister Nirmala Sitharaman introduced several significant changes to the income tax slabs and other tax regulations. These changes aim to provide relief to taxpayers and simplify the tax regime, aligning with the government’s goal to promote economic growth and ensure inclusive development. Thus, we have provided brief information pertaining to the new tax slabs and key changes announced in the budget 2024.

New Income Tax Slabs for New Tax Regime

The new tax slabs AY 2024-25 under the revised regime are designed to be more inclusive and offer greater relief to taxpayers. Here’s a detailed breakdown of the new income tax slabs:

1. Income up to ₹3 lakh: No tax
2. Income from ₹3 lakh to ₹6 lakh: 5%
3. Income from ₹6 lakh to ₹9 lakh: 10%
4. Income from ₹9 lakh to ₹12 lakh: 15%
5. Income from ₹12 lakh to ₹15 lakh: 20%
6. Income above ₹15 lakh: 30%

These slabs apply under the new tax regime, which has been simplified to reduce the tax burden on individuals. The basic exemption limit has been increased to ₹3 lakh from the previous ₹2.5 lakh. This change is expected to benefit a large number of taxpayers, especially those in the lower and middle-income brackets.

Changes in Standard Deduction After Union Budget 2024

The standard deduction has been increased from ₹50,000 to ₹75,000. This change is aimed at providing additional relief to salaried employees and pensioners, allowing them to reduce their taxable income significantly. By increasing the standard deduction, the government intends to boost the disposable income of individuals, which in turn can stimulate consumption and economic growth​.

Rebate Under Section 87A

The tax rebate under Section 87A has been enhanced, allowing individuals with income up to ₹7 lakh to not pay any taxes. This move is designed to ensure that individuals earning up to this threshold benefit fully from the tax exemptions and deductions available to them. The increase in the rebate limit is part of the government's strategy to support the lower-income groups and provide them with more financial stability.

Deduction on Family Pension

For pensioners, the deduction on family pension has been increased from ₹15,000 to ₹25,000. This is expected to provide additional financial support to families relying on pension income. By increasing this deduction, the government aims to help retired individuals manage their finances better and reduce their tax liability, thereby enhancing their overall well-being.

Conclusion

The Union Budget 2024 aims to provide significant relief to individual taxpayers and simplify the tax regime. By increasing the basic exemption limit, enhancing standard deductions, and simplifying capital gains taxes, the government seeks to make the tax system more efficient and taxpayer-friendly. These measures are expected to benefit a wide range of taxpayers, from salaried employees and pensioners to investors and senior citizens. The overall objective is to promote economic growth and ensure inclusive development across various segments of society.

In addition to the changes in tax slabs, the budget also focuses on infrastructure development, support for start-ups, investments in education and health, digital initiatives, and environmental sustainability. These comprehensive measures are designed to create a robust and resilient economy that can withstand global challenges and provide opportunities for all citizens to prosper. By implementing these policies, the government aims to pave the way for a developed and inclusive India​