Interim Budget 2024: Key details of new income tax regime slabs
Interim Budget 2024: Presenting her sixth consecutive Budget, Union Finance Minister Nirmala Sitharaman declared on Thursday that there would be no alterations to the income tax rates. She said, "I propose to retain the same tax rates for direct and indirect taxes, including import duties."
In the previous Budget of 2023, Nirmala Sitharaman introduced several modifications to personal income tax, primarily targeting the middle class. The government had introduced a new tax regime as the default option, but taxpayers also had the choice to adhere to the old one.
Under the new regime, the rebate limit was raised from Rs 5 lakh to Rs 7 lakh, ensuring that those opting for this regime would not be liable to pay any tax on an annual income of up to Rs 7 lakh.
Here are the key details of the new income tax regime slabs
Income up to Rs 3 lakh - No tax
Income between Rs 3–6 lakh - 5% tax (tax rebate under Section 87A available)
Income between Rs 6–9 lakh - 10% tax (tax rebate under Section 87A up to Rs 7 lakh available)
Income between Rs 9–12 lakh - 15% tax
Income between Rs 12–15 lakh - 20% tax
Income of Rs 15 lakh and above will be taxed at 30%.
For comparison, the old income tax slabs are as follows
Income up to Rs 2.5 lakh - No tax
Income between Rs 2.5 to Rs 5 lakh - 5% tax
Income between Rs 5 lakh to Rs 10 lakh - 20% tax
Income above Rs 10 lakh - 30% tax