New Delhi — In a bid to provide substantial tax relief to salaried individuals and pensioners, Union Finance and Corporate Affairs Minister Nirmala Sitharaman announced several enticing benefits under the new tax regime while presenting the Union Budget 2024-25 in Parliament today.
One of the key highlights of the budget is the proposed increase in the standard deduction for salaried employees from ₹50,000 to ₹75,000. Additionally, the deduction on family pension for pensioners is proposed to be enhanced from ₹15,000 to ₹25,000 under the new tax regime. This move is set to benefit approximately four crore salaried individuals and pensioners, enabling a potential savings of up to ₹17,500.
Finance Minister Sitharaman revealed that more than two-thirds of individual taxpayers opted for the new personal income tax regime in the last fiscal year, with over 8.61 crore income tax returns filed in the 2023-24 fiscal year. The new tax slabs under the revised income tax regime will be effective from April 1, 2024, and applicable for the Assessment Year 2025-26.
As part of the proposed changes, income up to ₹3 lakh will continue to be exempted from income tax under the new regime. The new tax slabs are as follows:
- 5% tax on income between ₹3-7 lakh
- 10% tax on income between ₹7-10 lakh
- 15% tax on income between ₹10-12 lakh
- 20% tax on income between ₹12-15 lakh
- 30% tax on income above ₹15 lakh
Under the existing tax regime, the tax slabs are:
- 5% tax on income between ₹3-6 lakh
- 10% tax on income between ₹6-9 lakh
- 15% tax on income between ₹9-12 lakh
- 20% tax on income between ₹12-15 lakh
- 30% tax on income above ₹15 lakh
These revisions aim to simplify the tax structure and make the new tax regime more appealing to taxpayers. The government’s efforts to increase standard deductions and adjust tax slabs are expected to provide significant relief and encourage more individuals to adopt the new tax regime.
Minister Sitharaman emphasized that these measures are part of the government’s ongoing commitment to improving the financial well-being of salaried employees and pensioners, ensuring that the benefits of economic growth reach all sections of society.
