Income Tax Slab Rates 2024-25: FM Nirmala Sitharaman Announces Revision in Tax Structure Under New Regime

Union Finance Minister Nirmala Sitharaman announced a revision in the tax rate structure on Tuesday, July 23. Sitharaman stated the news rates during his Union Budget 2024 speech.  The new tax slabs and relief measures are set to benefit millions of salaried individuals and pensioners across the country.

Rs 0- Rs 3 lakh will not pay taxes.

Rs 3 lakh- Rs7 lakh: 5%. 

Rs 7 lakh- Rs 10 lakh: 10%. 

Rs 10 lakh-Rs 12 lakh: 15%.

Also Read | Budget 2024: FM Nirmala Sitharaman Announces Loans Up to Rs 10 Lakh for Higher Education in Domestic Institution.

Previous Income Tax Rate

0 - 3 Lakh: Nil
3 - 6 Lakh: 5%
6-9 Lakh: 10%
9 - 12 Lakh: 15%
12 - 15 Lakh: 20%
Above 15 Lakh: 30%

These revised slabs are designed to provide substantial relief to taxpayers by reducing the overall tax burden, particularly for those in the lower and middle-income brackets.

Tax Relief and Revised Tax Slabs in New Tax Regime 👇

🔸 Income tax saving of up to ₹ 17,500/- for salaried employee in new tax regime

🔸 #IncomeTax Relief for around Four Crore Salaried Individuals and Pensioners

🔸 Standard deduction for salaried employees to be increased… pic.twitter.com/2m7pPRmzgP

— PIB India (@PIB_India) July 23, 2024

New Tax Regime

In the new tax regime, the tax rate structure is proposed to be revised, as follows:

▪️ 0-3 lakh rupees - Nil
▪️ 3-7 lakh rupees - 5 percent
▪️ 7-10 lakh rupees - 10 percent
▪️ 10-12 lakh rupees - 15 percent
▪️12-15 lakh rupees - 20 percent
▪️ Above 15 lakh… pic.twitter.com/h14v3RThkn— PIB India (@PIB_India) July 23, 2024

Salaried employees can now save up to Rs 17,500 under the new tax regime after to the revised slabs and relief measures. The standard deduction for salaried employees has been increased from Rs 50,000 to Rs 75,000. This increase is aimed at further reducing taxable income and providing additional financial relief. 

The deduction on family pension for pensioners has been raised from Rs 15,000 to Rs 25,000, enhancing financial support for those reliant on pension income.