New Tax Regime Slabs Changed, Standard Deduction Up From Rs 50,000 To 75,000

Standard deduction in the new tax regime will be increased from Rs 50,000 to Rs 75,000, Finance Minister Nirmala Sitharaman said Tuesday as she announced the 2024 Union Budget.

Jul 23, 2024 - 04:00
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New Tax Regime Slabs Changed, Standard Deduction Up From Rs 50,000 To 75,000

Standard deduction in the new tax regime will be increased from Rs 50,000 to Rs 75,000, Finance Minister Nirmala Sitharaman said Tuesday as she announced the 2024 Union Budget.

Ms Sitharaman also announced revisions to tax slabs in the new regime.

The revised slabs are as follows:

  1. Income up to Rs 3 lakh - Nil
  2. Rs 3 lakh to Rs 7 lakh - 5 per cent
  3. Rs 7 lakh to Rs 10 lakh - 10 per cent
  4. Rs 10 lakh to Rs 12 lakh - 15 per cent
  5. Rs 12 lakh to Rs 15 lakh - 20 per cent
  6. Above Rs 15 lakh - 30 per cent

As a result, Ms Sitharaman said, salaried employees can save as much as Rs 17,500 in the new regime. There will be no change in the old tax slabs, she also said.

The Finance Minister also announced a comprehensive review of the Income Tax Act of 1961, which will make it easier to read and understand, and reduce uncertainty and potential for litigation.

This will be completed in six months.