Budget 2024 Income Tax Slab
In the first budget of the Modi 3.0 government, Finance Minister Nirmala Sitharaman has made a big announcement for the salaried class. The government has given relief to the long-standing demand of the middle class for changes in tax slabs. Presenting the budget in Parliament, the finance minister announced that the government is simplifying the new tax system.
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The Finance Minister said that two-thirds of taxpayers have come under the new tax regime. Standard deduction limit has been increased from Rs 50 thousand to Rs 75000.
Changes in tax slabs too
Finance Minister Nirmala Sitharaman has made a big announcement regarding Income Tax. Along with the standard deduction, the tax slabs have also been changed. This change has happened in the new tax slab rate. Now 30 percent tax will be applicable if the income is more than 15 lakhs.
When did the change happen?
The BJP government had increased the standard deduction to Rs 40,000 annually in the 2018 budget. Following this, in the Interim Budget 2019, the standard deduction limit was increased to Rs 50,000 per annum. There has been no change in standard deduction since then. Now it has been increased to 75000.
Union Budget 2024-25 proposes:
👉 Income Tax Act, 1961 to be made concise and easy to read
👉 Opening of Reassessment beyond 3 years from end of assessment year only if escaped income is ₹50 lakh or more, up to a maximum period of 5 years from end of assessment year… pic.twitter.com/yGUdyAlexf
— Ministry of Finance (@FinMinIndia) July 23, 2024
The tax rate structure in the new tax system will be…
• No tax from zero to 3 lakhs.
• 5% tax from Rs.3 lakh to Rs.7 lakh.
• 10% tax from Rs 7 lakh to Rs 10 lakh.
• 10 lakh to Rs. 15% tax up to 12 lakhs.
• 20% tax from Rs 12 lakh to Rs 15 lakh.
• 30% tax rate above Rs 15 lakh.
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