Income Tax Slabs 2024-25 Budget 2024 Highlights & Announcements: Standard deduction hiked, tax slabs changed - taxpayers will save Rs 17,500! Capital gains tax regime changed

Income Tax Budget 2024 Highlights & Announcements: Finance Minister Nirmala Sitharaman announced changes to the new income tax regime in her Union Budget 2024 speech. These changes included new income tax slabs for FY 2024-25 and a hike in the standard deduction. The standard deduction was hiked from Rs 50,000 to Rs 75,000. Also the tax slab limit for 5% tax rate was changed from Rs 6 lakh to Rs 7 lakh. The capital gains tax regime was completely revamped with tax rates being increased. On expected lined no changes were announced in the old income tax regime since the government wants to incentivize the new regime.New income tax regime tax slabs are:Up to Rs 3 lakh the tax is NILFrom Rs 3 lakh to Rs 7 lakh the tax rate is 5%From Rs 7 lakh to Rs 10 lakh the tax rate is 10%From Rs 10 lakh to Rs 12 lakh the tax rate is 15%From Rs 12 lakh to Rs 15 lakh the tax rate is 20%Above Rs 15 lakh income the tax rate is 30%To improve social security benefits, deduction of expenditure by employers towards NPS is proposed to be increased from 10 to 14 per cent of the employee’s salary. Similarly, deduction of this expenditure up to 14 per cent of salary from the income of employees in private sector, public sector banks and undertakings, opting for the new tax regime, is proposed to be provided.“Introduction of simplified tax regimes without exemptions and deductions for corporate tax and personal income tax. This has been appreciated by tax payers. 58 per cent of corporate tax came from the simplified tax regime in financial year 2022-23. Similarly, as per data available till now for the last fiscal, more than two-thirds have availed the new personal income tax regime,” said FM Sitharaman.As a result of these proposals, revenue of about Rs 37,000 crore – Rs 29,000 crore in direct taxes and Rs 8,000 crore in indirect taxes – will be forgone while revenue of about Rs 30,000 crore rupees will be additionally mobilized. Thus, the total revenue forgone is about Rs 7,000 crore annually.Track TOI’s live coverage on the latest income tax slabs 2024-25, income tax rates and other top income tax announcements: