India Budget 2024: There was a long wait for the government to make an announcement regarding income tax. While presenting the budget this time, Finance Minister Nirmala Sitharaman said that the new tax regime is being made easier than before. Along with this, under the new tax regime, changes were made to increase the standard deduction and the income tax slab.
Income Tax: In the first budget of Modi 3.0 government, Finance Minister Nirmala Sitharaman has made a big announcement for the salaried class. The government has given relief on the long-standing demand of the middle class for change in tax slabs. While presenting the budget in Parliament, the Finance Minister announced that the new tax regime is being simplified by the government. The Finance Minister said that two-thirds of tax payers have come under the new tax regime. Under the new tax regime, the limit of standard deduction has been increased from Rs 50 thousand to Rs 75000. He said that due to this change, the government will suffer a loss of Rs 37000 crore. 4 crore taxpayers will directly benefit from the changes made by the government.
Tax slab changed in new tax regime
Apart from this, the Finance Minister has also made changes regarding the tax slab of the new tax regime. Under the new changes, zero tax will have to be paid on income up to Rs 3 lakh in the new tax regime. There will be a tax of 5 percent on income of 3 to 7 lakhs. 10 percent tax will have to be paid on income of Rs 7 to 10 lakhs. 15 percent tax will have to be paid on income of 10 to 12 lakhs. 20 percent tax will be levied on annual income of 12 to 15 lakhs. Those with income of more than 15 lakhs will have to pay 30 percent tax.
No relief to Old Tax Regime holders
The Finance Minister has not given any relief to Old Tax Regime holders. No change has been made in the Old Regime regarding standard deduction. That is, you will get only Rs 50,000 as standard deduction under the Old Tax Regime. Apart from this, no announcement has been made by the government regarding health insurance premium and 80C.
What is the new tax regime?
The salaried class who have selected the new tax regime has been given relief by the government once again. The Finance Minister has changed the income tax slab under the new tax regime. The standard deduction of Rs 50,000 which was available earlier has been increased to Rs 75,000. As before, no tax of any kind will have to be paid on income of 0-3 lakhs annually. After this, 5 percent tax will have to be paid on 3 to 7 lakhs. 10 percent tax will have to be paid on income of 7 to 10 lakhs. 15 percent tax has to be paid on 10 to 12 lakhs and 20 percent on 12 to 15 lakhs and 30 percent tax has to be paid on income of more than 15 lakhs.
What is the old tax regime?
In the old tax regime, there is no tax on annual income up to Rs 2.5 lakh. According to this, taxpayers will have to pay tax at the rate of 5% on annual income of Rs 2.5 lakh to Rs 5 lakh. If the annual income is 5 lakh to 10 lakh, then tax will have to be paid at the rate of 20 percent. But 30 percent tax will be levied on income above Rs 10 lakh. But under this you get many different types of tax benefits.
Announcement on NPS also
The government has increased the deduction limit on employer’s contribution for NPS from 10 percent to 14 percent. The government has proposed to increase the tax deduction on family pension for pensioners from Rs 15,000 to Rs 25,000.
