1. Slabs revised with increased standard deduction from ₹50,000 to ₹75,000.
2. Deduction raised from ₹15,000 to ₹25,000.
3. ₹17,500 benefit for taxpayers opting for the new regime.
New Delhi, July 23: Finance Minister Nirmala Sitharaman announced changes to the tax regime and an increase in standard deductions during the Budget 2024 presentation.
The new tax slabs will be revised, and the standard deduction will rise from ₹50,000 to ₹75,000 under the new regime. For family pensioners, the deduction will increase from ₹15,000 to ₹25,000.
These adjustments are expected to benefit four crore salaried individuals and pensioners. The revised tax slabs are as follows:
- Up to ₹3,00,000: Nil
- ₹3,00,001 to ₹7,00,000: 5%
- ₹7,00,001 to ₹10,00,000: 10%
- ₹10,00,001 to ₹12,00,000: 15%
- ₹12,00,001 to ₹15,00,000: 20%
- Above ₹15,00,000: 30%
This reform is projected to save taxpayers ₹17,500 under the new regime. Additionally, Sitharaman announced a comprehensive review of the Income Tax Act of 1961 to enhance clarity and reduce litigation risks.
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The Finance Minister also highlighted the government’s commitment to simplifying the tax system and noted that over two-thirds of individual taxpayers opted for the new tax regime in FY 2023-24. Furthermore, a new Vivaad Se Vishwas scheme 3.0 for 2024 was introduced.
Lastly, the National Pension System (NPS) deduction for employers’ contributions to employees’ basic salary will increase from 10% to 14%, benefiting both public and private sector employees under the new regime.