The Union Budget 2024-25 introduced new income tax slabs under the new tax regime, providing substantial relief to taxpayers. The revised tax structure aims to simplify the tax system and offer increased benefits to salaried individuals and pensioners.
Revised Income Tax Slabs
The new income tax slabs for the financial year 2024-25 are as follows:
- Income up to ₹3,00,000: Nil
- Income from ₹3,00,001 to ₹7,00,000: 5%
- Income from ₹7,00,001 to ₹10,00,000: 10%
- Income from ₹10,00,001 to ₹12,00,000: 15%
- Income from ₹12,00,001 to ₹15,00,000: 20%
- Income above ₹15,00,000: 30%.
Key Benefits and Deductions
- Standard Deduction for Salaried Individuals and Pensioners:
- The standard deduction for salaried individuals and pensioners has been increased from ₹50,000 to ₹75,000 under the new tax regime.
- Family Pension Deduction:
- The deduction for family pension has been raised from ₹15,000 to ₹25,000, providing additional relief to pensioners.
- Employer Contribution to New Pension Scheme (NPS):
- The deduction allowed for employer contributions to the NPS under Section 80CCD has been increased from 10% to 14% of the salary. Non-government employees in the new tax regime are now allowed a deduction of up to 14% of their salary.
Impact on Taxpayers
The revised tax slabs and enhanced deductions are expected to benefit a large number of taxpayers by reducing their overall tax burden. For instance, a salaried employee under the new tax regime could save up to ₹17,500 in income tax.
The introduction of these new slabs and benefits underscores the government’s commitment to simplifying the tax system and providing financial relief to taxpayers, thereby encouraging compliance and fostering economic growth.