Income Tax Slab Rate for FY 2024-25 Highlights: Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament on Tuesday. Expectations were high that the Modi government would announce some big bang tax reforms benefitting the middle class and salaried taxpayers. But the FM refrained from making any big tax relief announcements, baring a few under the New tax Regime. Presenting her seventh straight budget, the FM announced a hike in Standard Deduction to Rs 75,000 from Rs 50,000 and brought some changes to the tax slabs under the new tax regime. The government did not hike the basic tax exemption limits or introduce any new deduction benefits under the new tax regime, which has already been adopted by two-thirds of taxpayers.
Income Tax Slab Rate for AY 2024-25 Live Updates: Full coverage on Income Tax Slab for AY 2024-25 for Salaried Person, Senior Citizen Announcements, New Tax Regime Slabs
Salaried taxpayers are now anticipating an overhaul of the income tax slabs under both new and old tax regimes in the Union Budget 2024. In the Union Budget 2023, adjustments to the new personal tax regime included increasing the basic exemption limit to Rs 3 lakh from Rs 2.5 lakh and reducing the surcharge for high-income earners. Under the old tax regime, there were no changes made. Now, taxpayers are hoping that the government will initiate substantial measures, including changes in the tax slab, for the taxpayers opting for the old tax regime in this budget. This could involve raising the income tax exemption limit to Rs 5 lakh to align with the new tax regime, which currently has tax rates ranging between 5% and 30%. Individual taxpayers also expect an increase in Section 80C tax deduction benefit under the Income Tax Act, 1961, which currently allows for a reduction in taxable income up to a maximum limit of Rs 1.5 lakh through investments or specified expenditures.
Here are some FAQs:
Q. What are the changes announced in income tax slabs under the new tax regime in the Union Budget 2024?
Ans: In the Union Budget 2024, FM Sitharaman is likely to revise income tax slabs to bring some relief to middle-class taxpayers. The new tax slabs under the new tax regime will cut the tax burden and simplify compliance for taxpayers.
Q. Has the standard deduction for salaried taxpayers increased in this budget?
Ans: FM Sitharaman is expected to increase the standard deduction for salaried taxpayers. It will provide additional relief and increase disposable income for taxpayers.
Q. What are the new deduction and exemption benefits introduced for middle-class taxpayers?
Ans. The budget 2024 may introduce new deduction and exemption benefits, including higher limits for home loan interest and medical expenses. These measures are aimed at reducing the overall tax liability for middle-class taxpayers.
Q. What are the major changes in tax slabs and rates in budget 2024?
Ans: There were many changes in tax policies, including revised slabs and increased deductions, that will positively impact middle-class taxpayers.
Q. Are there any new tax incentives for individual taxpayers announced in this budget?
Ans: The budget has announced new savings schemes and incentives aimed at encouraging investment and saving among individual taxpayers. These include higher interest rates on specific savings schemes and additional tax benefits for long-term investments.
Q. Which tax regime is more beneficial for salaried taxpayers after the recent budget changes?
Ans: The budget changes have made the new tax regime more attractive for many salaried taxpayers, especially those who do not claim many deductions. However, the old tax regime may still be beneficial for those with significant deductions and exemptions.
Q. Can you switch between the new and old tax regimes for the upcoming financial year? If so, how?
Ans: Taxpayers can choose to switch between the new and old tax regimes for the upcoming financial year. The process involves selecting the preferred regime while filing your income tax return and ensuring compliance with the rules applicable to that regime.
Q. Have there been any changes in the tax rates or deductions under the new tax regime in this budget?
Ans: The budget may introduce changes in the tax rates and deductions under the new tax regime. These changes are designed to make the new regime more competitive and attractive, offering lower rates and simplified compliance.
Income Tax Slab for FY 2024-25 - New Tax Regime Slabs Live Updates Small taxpayers, who have not seen any major tax changes in the past few years, are expecting the Modi government to fulfil their wishes on the tax relief front in this Budget. They have been eagerly hoping for tax relief and concessions in the Budget for FY 2024-25. Even in the interim budget presentation early this year ahead of the Lok Sabha polls, under the Modi 2.0 regime, there were no major tax relief measures announced for taxpayers. In the interim budget, the Modi government continued existing tax rates and decided to uphold the current capital gains framework without any alterations.
