Will tax slab change in 2024 | Finance Minister’s big announcement in the budget: 1 crore taxpayers will benefit
Budget 2024 Income Tax Rates | Budget 2024 Income Tax Rates: Finance Minister Nirmala Sitharaman has not made any changes in tax rates in the budget. All types of tax rates, including import duty, will remain in effect as before. (Budget 2024 News)
Budget 2024 Income Tax Rates | Budget 2024 Income Tax Rate: Finance Minister Nirmala Sitharaman made a big announcement in the Interim Budget 2024 (Budget 2024). While presenting the budget, he said that some very old tax cases will be withdrawn. Withdrawal of such cases will benefit 1 crore taxpayers. At the same time, tax disputes will also be resolved. The Finance Minister has not made any change in the tax rates (Tax slab in 2024) in the budget. All types of tax rates, including import duty, will remain in effect as before. (Will tax slab change in 2024?)
Finance Minister Nirmala Sitharaman said that the old outstanding direct tax demand will be withdrawn. This covers cases up to Rs 25,000 till FY 2010 and up to Rs 10,000 for FY 2011-2015. Taxpayer facilities have been enhanced in the last 5 years. GST has reduced the compliance burden on industries. The average collection of GST has doubled. The finance minister said that tax reform has increased the scope of taxpayers.
Budget 2024 on Income Tax Slabs: Tax Slabs in New Tax System?
In the new tax regime, you get a standard deduction of Rs 50,000 and tax exemption on money deposited in corporate NPS. Apart from this you don’t get any discount. There are total 6 slabs in the new tax system. Now let’s know what are the tax slab rates.
In the new tax system, you will not have to pay any tax up to Rs 3 lakh.
Salary between Rs 3-6 lakh is taxed at 5%, but if the total taxable income is less than Rs 7 lakh, you get exemption under Section 87A.
Salary up to Rs 6-9 lakh will attract 10% tax, but if the taxable income is less than Rs 7 lakh, you will make a profit.
15 percent tax is levied on Rs 9 to 12 lakh.
On a salary of Rs 12-15 lakh you will have to pay 20 percent tax.
You will have to pay 30 percent tax on salary above 15 lakhs.
Budget 2024 on income tax slabs: 5 slabs in old tax system
1- Rs. 0 to Rs. 2.5 lakhs
The first slab is for salary up to Rs 2.5 lakh, on which every taxpayer gets tax exemption. That means if your total income is up to Rs 2.5 lakh, you don’t need to pay even a single rupee of tax. You don’t even need to file ITR.
2- 2.5 to 3 lakh rupees
Under this, senior citizens (above 60 years) and super senior citizens (above 80 years) get a special discount of Rs 50,000. They need not pay tax even on taxable income of Rs 2.5 to 3 lakh. That means they get tax exemption on salary up to Rs 3 lakh.
3- 2.5 lakh to 5 lakh rupees
If your taxable income is between Rs 2.5 lakh and Rs 5 lakh, you will have to pay tax on that income at the rate of 5 percent. However, if your total taxable income is only up to Rs 5 lakh, you will get a deduction of up to Rs 12,500 under Section 87A of the Income Tax Act. Thus the effective tax on you will be nil. However, you will get this benefit only after filing ITR.
4- 5 lakh to 10 lakh rupees
If your taxable income is between Rs 5 lakh and Rs 10 lakh, you will have to pay a direct tax of 20 percent. However, you can save a lot of tax through various expenses and investments including HRA, savings under 80C, children’s education expenses etc. Suppose your salary is Rs 10 lakh and you save Rs 5 lakh by investing and showing expenses, your tax liability will be zero, as your taxable income will be Rs 5 lakh. If you can take a deduction of Rs 3 lakh only, your taxable income will be Rs 7 lakh. Thus, you will have to pay tax at the rate of 5 percent on income between Rs 2.5 lakh and Rs 5 lakh and 20 percent on income between Rs 5 lakh and Rs 7 lakh.
5- more than 10 lakhs
If your taxable income exceeds Rs 10 lakh, you will have to pay 30 percent tax. Note that the taxable income here is the remaining income after taking all deductions and exemptions. It is taxed.
