The recent Union Budget 2024 has introduced significant changes to the taxation of capital gains and rationalisation of TDS rates.
Finance Minister Nirmala Sitharaman on Tuesday increased the standard deduction for salaried employees from Rs 50,000 to Rs 75,000 and increased the family pension deduction for pensioners from Rs 15,000 to Rs 25,000.
These changes will benefit around four crore salaried individuals and pensioners, allowing them to save up to Rs 18,200 annually.
Savings for various income groups
Income: Rs 10 lakh
- Existing tax regime: Tax = Rs 54,600
- Proposed tax regime: Tax = Rs 44,200
- Savings: Rs 10,400
Income: Rs 15 lakh
- Existing tax regime: Tax = Rs 1,45,600
- Proposed tax regime: Tax = Rs 1,30,000
- Savings: Rs 15,600
Income: Rs 20 lakh
- Existing tax regime: Tax = Rs 2,96,400
- Proposed tax regime: Tax = Rs 2,78,200
- Savings: Rs 18,200
Income: Rs 25 lakh
- Existing tax regime: Tax = Rs 4,52,400
- Proposed tax regime: Tax = Rs 4,34,200
- Savings: Rs 18,200
1️⃣0️⃣ proposed Amendments relating to Direct Taxes in the Budget Proposal 2024-25
▪️ Substantial relief in the new tax regime with new slabs and tax rates
▪️Standard deduction to salaried individuals and pensioners increased from Rs 50,000 to 75,000
(1/6)#UnionBudget2024… pic.twitter.com/HBBim61x80
— PIB India (@PIB_India) July 24, 2024
Proposed tax slabs 2024
- Up to Rs 3 lakh: Nil
- Rs 3 lakh – Rs 7 lakh: 5 per cent
- Rs 7 lakh – Rs 10 lakh: 10 per cent
- Rs 10 lakh – Rs 12 lakh: 15 per cent
- Rs 12 lakh – Rs 15 lakh: 20 per cent
- More than Rs 15 lakh: 30 per cent
The proposed tax structure widens the income slabs, providing relief to taxpayers. Specifically, the 5 per cent slab has been extended up to Rs 7 lakh, compared to Rs 6 lakh currently. The 10 per cent slab has also been extended up to Rs 10 lakh from Rs 9 lakh currently. In her Budget speech, the Finance Minister also announced a “comprehensive review” of the Income Tax Act, 1961. This review aims to reduce disputes and litigation and is proposed to be completed within six months