Budget 2024-25: Here's a comparison between old and new tax regimes
By : DC Web Desk
Update: 2024-07-23 07:36 GMT
Hyderabad: Union Finance Minister Nirmala Sitharaman Presented the budget 2024-25 in the parliament on Tuesday making it her seventh straight budget presentation.
The Finance Minister has also tabled a new tax regime for AY 2024-25 with an Income Tax relief for around four crore salaried individuals and pensioners.
FM Sitharaman had also said that the new tax regime will benefit salaried employees as they can save up to Rs 17,000 in Income Tax. She also stated that the standard deduction for salaried employees would be increased from Rs 50,000 to Rs 75,000 and the deduction on family pension for pensioners would be increased from Rs 15,000 to Rs 25,000.
Here is a comparison between the old and the new tax regime:
The Old Regime:
0 to 2.5 lakh income attracted NIL tax, while 2.5 to 5 lakh, 5-10 lakh and above 10 lakh slabs attracted 5 percent, 20 percent and 30 percent respectively.
Standard deduction- Rs 50,000: Income Tax rebate limit- Rs 5,00,000
The New Regime:
0-3 lakh slab will attract NIL tax, while 3-6 lakh slab, 6-9 lakh slab, 9-12 lakh slab, 12-15 lakh slab will attract 5 percent, 10 percent, 15 percent and 20 percent respectively. Above 15 lakh slab attracts the maximum of 30 percent tax.
Standard deduction- Rs 75,000: Income Tax rebate limit- Rs 7,00,000