Budget 2024 Income Tax Slabs FY25 Highlights: No changes in tax rates; know income tax slabs & tax rates for 2024-25

Budget 2024: “As expected there is no change in the tax rate. As an individual taxpayer, you will have to wait till July when the full year budget will be announced. Then we will have clarity about the tax rate for the upcoming year”, says Preeti Sharma, Partner, Tax & Regulatory Services, BDO India LLP.

Income Tax Slabs 2024-2025: Budget 2024, which was an Interim Budgext, did not see any changes in the income tax slabs or income tax rates by Finance Minister Nirmala Sitharaman. If you as the common man, individual or salaried taxpayer are wondering what the income tax slabs and income tax rates are for financial year 2024-25 (Assessment year 2025-26), we have you covered.

Budget 2024 income tax: While no changes to the income tax slabs for 2024-25 were announced by Finance Minister Nirmala Sitharaman in her Union Budget 2024 speech, the FM did announce a small tax relief for taxpayers. FM Nirmala Sitharaman has announced an income tax amnesty for taxpayers with outstanding direct tax demand disputes with the income tax department. According to the announcement, taxpayers with outstanding direct tax demands up to Rs 25,000 till financial year (FY) 2009-10 and up to Rs 10,000 between FY 2010-11 and FY 2014-15 will have their demands withdrawn. In simpler terms, taxpayers with pending tax demand disputes within the specified limits for the mentioned financial years will be eligible for this benefit. However, there is some confusion regarding the eligibility criteria for this tax demand waiver. It is not as clear as it may seem.

Income Tax Live: In the interim budget for financial year 2024-25, the Finance Minister proposed to retain the tax rates as is. Hence, unless there is any change brought in during the final budget post the general elections, the personal income-tax rates applicable for the financial year 2024-25 will be as in the imager: Income-tax rates under the regular/ old tax regime for individuals (residents below 60 years of age, NR and NOR) for the financial year 2024-25:

Budget 2024 income tax: During Budget 2024 speech, the Finance Minister Nirmala Sitharaman announced the removal of disputed direct tax demands up to Rs 25,000, aiming to provide relief to income taxpayers. As mentioned in the speech, this is expected to benefit approximately 1 crore taxpayers.The proposal involves withdrawing outstanding direct tax demands, specifically those up to Rs 25,000 for the period up to FY 2009-10 and up to Rs 10,000 for financial years 2010-11 to 2014-15. This is aimed at benefiting approximately one crore taxpayers by addressing issues related to small, unresolved, or disputed tax demands that have lingered on for years.

Income Tax Live: “Keeping up with tradition the government has not announced any changes in the tax rates or benefits given that this was a “vote-on-account” budget. However, one very positive change announced by the FM is in relation to long pending outstanding direct tax demands, some of which date back to as early as 1962. Such outstanding tax demands are proposed to be deleted up to INR 25,000 pertaining to the period up to FY 2009-10 and up to INR 10,000 for FY 2010-11 to 2014-15. The honourable FM also highlighted that a large number of measures were taken in the past few years to improve tax-payer services,” EY told TOI. EY has reproduced below some of these key focused steps that have been taken to reduce tax litigation:

• In 2020 - Vivad se Vishwas (direct tax amnesty scheme) was introduced to reduce direct tax cases pending in various appellate forums
• In 2021, Board for Advance Rulings was constituted to replace Authority for Advance Rulings. Dispute Resolution Committee was set-up to resolve disputes for small taxpayers in a faceless manner. The retrospective applicability of indirect transfer provisions was withdrawn
• In 2022 – Deferment of litigation allowed where an identical question of law is pending in appeal before jurisdictional High Court or Supreme Court
• In 2023 – 100 Joint Commissioners were deployed for disposal of small appeals. 516 Advance Pricing Agreements signed as on 31 March 2023. Amnesty Scheme under GST introduced with respect to non-filing of returns / appeals within statutory timelines

FM Nirmala Sitharaman has not announced any changes in the income tax slabs or income tax rates for 2024-25. Here are the existing tax rates under both the regimes for FY25, unless any changes are announced in the full year Budget in July.

Income Tax Slabs Live: For the new income tax regime in the financial year 2023-24, individuals are subject to an additional surcharge on their income tax if the total income surpasses Rs 5,000,000. The surcharge rates are as mentioned below. Additionally, a health and education cess at the rate of 4% is applied to the income tax and surcharge (if applicable) for all individuals.

Budget 2024 income tax expectations: Changes in income tax slabs, income tax rates, hike in standard deduction, Section 80C limit, more attractive new income tax regime - these are some of the top expectations of the common man and middle class from the Narendra Modi government’s Interim Union Budget 2024. FM Nirmala Sitharaman will present Budget 2024 on February 1, 2024 as part of the Parliament’s Budget session. Ahead of the Union Budget 2024, Times of India Online surveyed 10 economists and experts on their major expectations from the budget. Asked whether there is a scope to provide income tax relief for the common man and middle class, the economists and experts were divided.

• Hike in standard deduction
• Inclusion of National Pension System (NPS) under new income tax regime
• Hiking limit of Section 80C/including Section 80C under new income tax regime
• Enhanced limit for housing loan interest
• Tweaking income tax slabs and tax rates to give more disposable income in the hands of the common man

Below are the income tax slabs under the old income tax regime as applicable for the financial year 2023-24. Since the Modi government has been actively pushing for the new income tax regime, any changes in the old tax regime are unlikely.

Below are the Income tax Slabs under the new Income Tax regime that were modified by Finance Minister Nirmala Sitharaman in last year's Budget. This year too there are high expectations from Budget 2024 to modify the new income tax regime to make it more attractive for the salaried taxpayers.

Budget 2024 income tax slabs: Finance Minister Nirmala Sitharaman will present Interim Budget 2024 on February 1, 2024 and like every year salaried taxpayers are hopeful of income tax relief. Will the income tax slabs for FY 2024-25 be changed? Will changes be introduced in the new income tax and old tax regimes? Last year’s Budget announced several changes to the income tax slabs under the new tax regime. Even as we wait for Union Budget 2024 income tax announcements,