Budget 2024: New Tax Regime for Salaried | Income Tax Slab Rates Explained |
Time stamp:-
00:00 Intro
00:23 Budget 2024 No changes for Old Regime
00:47 Budget presentation and Election
01:00 Budget Announcement for personal Income Tax
02:21 Change in personal Income Tax slab rates
02:23 old regime or new regime?
04:11 Direct Tax Code (DTC)
04:44 whether old regime continue if DTC introduced?
The Union Budget 2024 introduced notable changes in the new tax regime for salaried employees, aimed at increasing the regime's appeal. Here are the key updates:
1. Higher Standard Deduction: The standard deduction for salaried employees has been increased from Rs 50,000 to Rs 75,000. This increase provides immediate tax relief, particularly benefiting those with higher taxable incomes.
2. Revised Tax Slabs: The income brackets under the new regime have been adjusted to widen the 5% and 10% bands:
Rs 0-3 lakh: Nil (no change)
Rs 3-7 lakh: 5% (previously applied up to Rs 6 lakh)
Rs 7-10 lakh: 10% (previously capped at Rs 9 lakh)
Rs 10-12 lakh: 15%
Rs 12-15 lakh: 20%
Above Rs 15 lakh: 30%
3. Potential Savings: With these changes, taxpayers in higher brackets could save up to Rs 17,500 annually. This includes savings from the increased standard deduction and lower tax rates in specific income ranges.
These adjustments aim to make the new regime a more viable option, potentially increasing its adoption among salaried employees.