In a move aimed at providing relief to salaried employees and encouraging adoption of the new tax regime, Finance Minister Nirmala Sitharaman announced an increase in the standard deduction from Rs 50,000 to Rs 75,000. This enhancement, declared during the presentation of the Union Budget 2024, is expected to benefit millions of salaried individuals across the country. The standard deduction, a flat amount that is deducted from the gross salary, effectively reduces the taxable income of employees, resulting in lower tax liabilities. The previous standard deduction of Rs 50,000, which was introduced in the 2018 budget, provided substantial relief to taxpayers. However, the latest increment to Rs 75,000 is a significant step towards further easing the financial burden on salaried employees.
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Income Tax Slabs for FY 2024-25 for the new income tax regime have been revised. The new income tax regime tax slabs are:
Up to Rs 3 lakh the tax is NIL
From Rs 3 lakh to Rs 7 lakh the tax rate is 5%
From Rs 7 lakh to Rs 10 lakh the tax rate is 10%
From Rs 10 lakh to Rs 12 lakh the tax rate is 15%
From Rs 12 lakh to Rs 15 lakh the tax rate is 20%
Above Rs 15 lakh income the tax rate is 30%
Finance Minister Nirmala Sitharaman is presenting her seventh consecutive Budget in Parliament today. In her 7th record Union Budget, Nirmala Sitharaman announced key employment schemes. Prime Minister Narendra Modi yesterday had said that the Finance Minister will present a strong budget, adding that he will ensure that the government's guarantees reach the common man. Nirmala Sitharaman yesterday - on the first day of the Monsoon Session of Parliament - tabled the Economic Survey in Parliament. India is currently the world’s fifth largest economy and is well on its way to become the third largest in the coming years. Ahead of the Budget 2024 presentation, PM Narendra Modi said that India is the fastest growing major economy in the world and that Budget 2024 will further provide direction to the dream of ‘Viksit Bharat’ or developed India by 2047.