Union Budget 2024: Significant changes in new tax regime announced | Check details

Union Budget 2024: Finance Minister Nirmala Sitharaman announced major revisions to the new tax regime in the Union Budget 2024, aiming to provide greater relief to taxpayers and simplify the tax structure.

One of the key highlights is the increase in the standard deduction, which has been proposed to rise from Rs 50,000 to Rs 75,000. This change is expected to benefit salaried employees, offering them additional savings. Additionally, the tax rate structure under the new tax regime has been revised to make it more attractive for taxpayers.

The revised tax slabs are as follows:

Income up to Rs 3 lakh: Zero tax

Income from Rs 3 lakh to Rs 7 lakh: 5%

Income from Rs 7 lakh to Rs 10 lakh: 10%

Income from Rs 10 lakh to Rs 12 lakh: 15%

Income from Rs 12 lakh to Rs 15 lakh: 20%

Income above Rs 15 lakh: 30%

These changes aim to reduce the tax burden on individuals, especially those in the lower and middle-income brackets. By adjusting the tax slabs, the government seeks to make the tax regime more progressive and equitable, ensuring that higher earners contribute a larger share of their income in taxes.

For salaried employees opting for the new tax regime, these revisions are expected to result in significant savings. An individual can save up to Rs 17,500 in income tax, depending on their income level. This increase in disposable income is likely to boost consumer spending, which can positively impact the economy.

Despite these substantial changes in the new tax regime, the Finance Minister confirmed that there would be no alterations to the old tax regime. Taxpayers who prefer the deductions and exemptions available under the old system can continue to benefit from them. This dual approach allows taxpayers the flexibility to choose the regime that best suits their financial situation.