Union Budget 2024: Income Tax Updates

By Team foundit

July 23, 2024

Tax Announcements

The Union Budget 2024 has introduced important changes to the income tax slabs and rates.

Revised Income Tax Slabs

New Tax Regime: Up to ₹3,00,000 - 0%, ₹3,00,001 to ₹6,00,000 - 5%, ₹6,00,001 to ₹9,00,000 - 10%. ₹9,00,001 to ₹12,00,000 - 15%, ₹12,00,001 to ₹15,00,000 - 20%, Above ₹15,00,000 - 30%.

Basic Exemption Limit Raised

The basic exemption limit is increased to ₹3,00,000 from ₹2,50,000 under the new tax regime.

Increased Tax Rebate Limit

The tax rebate limit under Section 87A is raised to ₹7,00,000, meaning no tax for income up to this amount.

Reduction in Tax Slabs

The number of income tax slabs has been reduced from six to five in the new regime.

Surcharge Rate Decreased

The highest surcharge rate is reduced from 37% to 25% in the new tax regime.

Standard Deduction and Savings

Standard deduction increased to ₹75,000. Salaried employees can save up to ₹17,500  under the revised new tax regime.

No Changes in Old Tax Regime

There are no changes to the old tax regime slabs and rates