Budget 2024: Income tax slabs revised under new regime

The standard deduction limit for salaried individuals under the new tax regime would be increased to Rs 75,000 from Rs 50,000, the finance minister said.

Jul 23, 2024 - 18:30

Budget 2024: Income tax slabs revised under new regime

Union Finance Minister Nirmala Sitharaman on Tuesday announced revised slabs for the new income tax regime.

Sitharaman also announced that the standard deduction limit for salaried individuals under the new tax regime would be increased to Rs 75,000 from Rs 50,000. The deduction for family pension for pensioners was hiked to Rs 25,000 from Rs 15,000.

In the new tax regime, no tax is levied on annual income up to Rs 3 lakh.

Revised slabs under the new tax regime

Income slabs	Tax rate
Up to Rs 3 lakh	Nil
Rs 3 lakh to Rs 7 lakh	5%
Rs 7 lakh to Rs 10 lakh	10%
Rs 10 lakh to Rs 12 lakh	15%
Rs 12 lakh to Rs 15 lakh	20%
Above Rs 15 lakh	30%

Source: Ministry of Finance

Earlier, a tax rate of 5% was applied to income between Rs 3 lakh and Rs 6 lakh, 10% to income between Rs 6 lakh and Rs 9 lakh and 15% to income between Rs 9 lakh and Rs 12 lakh.

Income from Rs 12 lakh to Rs 15 lakh was taxed at 20% and those earning above Rs 15 lakh were paying 30% as tax.

On Tuesday, Sitharaman claimed that as a result...