Union Budget 2024: Old vs New Income Tax Slabs, Key Changes in New Regime

Union Finance Minister Nirmala Sitharaman unveiled a new tax structure under the revised tax regime, aiming to provide relief to middle-income earners. The proposal includes maintaining an exemption for income up to Rs 3 lakh. Under the new structure, a 5 percent tax will apply to income between Rs 3 lakh and Rs 7 lakh, 10 percent for income between Rs 7 lakh and Rs 10 lakh, and 15 percent for income between Rs 10 lakh and Rs 12 lakh. Income between Rs 12 lakh and Rs 15 lakh will continue to be taxed at 20 percent, while a 30 percent tax will be imposed on earnings exceeding Rs 15 lakh.

New Tax Structure (Effective from April 1, 2024)

• Income up to Rs 3,00,000: Nil
• Rs 3,00,001 - Rs 7,00,000: 5% on the amount exceeding Rs 3,00,000
• Rs 7,00,001 - Rs 10,00,000: Rs 20,000 + 10% on the amount exceeding Rs 7,00,000
• Rs 10,00,001 - Rs 12,00,000: Rs 50,000 + 15% on the amount exceeding Rs 10,00,000
• Rs 12,00,001 -  Rs 15,00,000: Rs 80,000 + 20% on the amount exceeding Rs 12,00,000
• Above Rs 15,00,000: Rs 1,40,000 + 30% on the amount exceeding Rs 15,00,000

Current Tax Structure

• Income up to Rs 3,00,000: Nil
• Rs 3,00,001 - Rs 6,00,000: 5% on the amount exceeding Rs 3,00,000
• Rs 6,00,001 - Rs 9,00,000: Rs 15,000 + 10% on the amount exceeding Rs 6,00,000
• Rs 9,00,001 - Rs 12,00,000: Rs 45,000 + 15% on the amount exceeding Rs 9,00,000
• Rs 12,00,001 -Rs 15,00,000: Rs 90,000 + 20% on the amount exceeding Rs 12,00,000
• Above Rs 15,00,000: Rs 1,50,000 + 30% on the amount exceeding Rs 15,00,000

The proposed tax structure extends the income slabs, notably increasing the 5% slab to Rs 7 lakh from Rs 6 lakh under the current regime. This adjustment provides greater tax relief for individuals with incomes up to Rs 7 lakh.