Budget 2024: No change in income tax slab rates
During her budget speech on Thursday, Union Finance Minister Nirmala Sitharaman announced that income tax slab rates will remain the same for both new and old tax regimes. This came as a major disappointment for the salaried class, who had been hoping for tax reforms to lessen their financial burden. Sitharaman presented the Union Interim Budget 2024-25 on Thursday. The full budget is set to be presented in July after a new government is elected after the Lok Sabha elections.
New regime tax slabs remain unaltered
Under the new regime, no tax will be applicable on annual income of up to Rs. 3 lakh. Income between Rs. 3-6 lakh will be taxed at 5% and Rs. 6-9 lakh at 10%. However, a tax rebate on income of up to Rs. 7 lakh is applicable under Income Tax Act Section 87A. Moreover, annual income between Rs. 9-12 lakh will be taxed at 15%, Rs. 12-15 lakh at 20%, and Rs. 15 lakh and above at 30%.
Old regime tax slabs also unchanged
In contrast, the old tax regime exempts annual income of up to Rs. 2.5 lakh from taxation. Income between Rs. 2.5-5 lakh is taxed at 5%, between Rs. 5 lakh to Rs. 10 lakh is taxed at 20%, and income above Rs. 10 lakh is taxed at 30%. The income tax exemption limit is up to Rs. 3 lakh for senior citizens aged above 60 years. For super senior citizens, (aged above 80 years), the limit is Rs. 5 lakh.
