Budget 2024 Income Tax Rates: Finance Minister Nirmala Sitharaman has not made any change in the tax rates in the budget. All types of tax rates including import duty will remain effective as before.
Budget 2024 Income Tax Rates: Finance Minister Nirmala Sitharaman made a big announcement in the interim Budget 2024. While presenting the budget, he said that some very old tax cases will be withdrawn. Withdrawal of such cases will benefit 1 crore taxpayers. At the same time, tax related disputes will be resolved. The Finance Minister has not made any change in the tax rates in the budget. All types of tax rates including import duty will remain effective as before.
Finance Minister Nirmala Sitharaman said that the facilities for taxpayers have been increased in the last 5 years. Due to GST, the burden of compliance on the industry has reduced. Average GST collection has doubled. The Finance Minister said that the tax reform has increased the scope of taxpayers.
Budget 2024 on Income Tax Slabs: Tax slabs in the new tax regime?
In the new tax regime, you get a standard deduction of Rs 50,000 and tax exemption on money deposited in corporate NPS. Apart from this you do not get any discount. There are a total of 6 slabs in the new tax regime. Let us know what are the tax slab rates now.
- In the new tax regime, you will not have to pay any tax up to Rs 3 lakh.
- Salary up to Rs 3-6 lakh is taxed at 5%, but if the total taxable income is less than Rs 7 lakh, you will get rebate under Section 87A.
- There will be 10% tax on salary up to Rs 6-9 lakh, but if the taxable income is less than Rs 7 lakh, you will be in profit.
- 15 percent tax is being charged on Rs 9-12 lakh.
- You will have to pay 20 percent tax on salary of Rs 12-15 lakh.
- You will have to pay 30 percent tax on salary above Rs 15 lakh.
Budget 2024 on Income Tax Slabs: 5 slabs in the old tax regime
1- Rs 0 to Rs 2.5 lakh
The first slab is of salary up to Rs 2.5 lakh, on which every taxpayer gets tax exemption. That is, if your total income is up to Rs 2.5 lakh then you do not need to pay even a single rupee tax. You don’t even need to fill ITR.
2- 2.5 to 3 lakh rupees
Under this, senior citizens (above 60 years) and super senior citizens (above 80 years) get a special discount of Rs 50 thousand. They do not need to pay tax even on taxable income of Rs 2.5 to 3 lakh. Meaning, they get tax exemption on salary up to Rs 3 lakh.
3- Rs 2.5 lakh to Rs 5 lakh
If your taxable income is between Rs 2.5 lakh to Rs 5 lakh, then you will have to pay tax at the rate of 5 percent on that income. However, if your total taxable income remains only up to Rs 5 lakh, then you will get a rebate of up to Rs 12,500 under Section 87A of the Income Tax Act. In this way the effective tax on you will become zero. However, you will get this benefit only when you file ITR.
4- Rs 5 lakh to Rs 10 lakh
If your taxable income is between Rs 5-10 lakh, then you will have to pay 20 percent tax directly. However, you can save a lot of tax through various expenses and investments including HRA, savings under 80C, expenses on children’s education etc. Suppose your salary is Rs 10 lakh and you save Rs 5 lakh by investing and showing expenses, then your tax liability will become zero, because your taxable income will become Rs 5 lakh. Whereas if you are able to take deduction of only Rs 3 lakh then your taxable income will be Rs 7 lakh. In this way, you will have to pay tax at the rate of 5 percent on income between Rs 2.5 lakh to Rs 5 lakh and then 20 percent on income up to Rs 5-7 lakh.
5- Above 10 lakhs
If your taxable income is more than Rs 10 lakh, you will have to pay 30 percent tax. Keep in mind that here taxable income means the income left after getting all types of deductions and exemptions. Tax is levied on that.
