Budget 2024: Latest Income Tax Slab for FY 2024–25 has been announced. Tax savings of Rs.17,500. Check updated details here!

Latest Income Tax Slab FY 2024–25: The Union Budget 2024 is currently being presented by the finance minister of India, Nirmala Sitharaman.  As per Budget 2024, the latest income tax slabs have been announced. The new tax regime becomes the default tax regime for tax calculations. The exemption limit remained unchanged at 3 lakhs. The standard deduction limit has been hiked to Rs 75,000. 

According to finance minister, Nirmala Sitharaman, the hike in standard deduction limits and the changed income tax slabs will result in a savings of Rs. 17,500 for the taxpayers who are earning more than 10 lakh annually.

Check out the latest income tax slab for FY 2024–25 in a tabular format below.

New Tax Regime: Latest Income Tax Slab (FY 2024–25)

In Budget 2024, Nirmala Sitharaman announced the following tax slabs under the new tax regime:

The standard deduction limit has been raised to Rs. 75,000 in Budget 2024 for salaried employees, and for family pensioners, the limit has been hiked to 25,000. This announcement is expected to bring tax relief for four crore salaried employees and pensioners.

Income Tax Slabs (FY 2023–24)

Budget 2023 introduced the new tax regime as the default regime for filing of income tax returns, while allowing people to continue with the option to choose the old regime as well. Following is the tax slab under the new tax regime:

Source: Groww

Under the new tax regime, the exemption limit was raised to 3 lakh while also introducing a standard deduction of Rs. 50,000 for salaried employees and pensioners.

Also, taxpayers with taxable income of 7 lakhs can claim a rebate under Section 87A up to an amount of Rs. 25000. It means that those with earnings of 7 lakhs need not pay any tax.  

Prof. V.P Singh, Program Director – PGDM, Professor of Managerial Economics and Statistics, Great Lakes Institute of Management, Gurgaon, has the following to say about Budget 2024:

"Given the global gloom, Bharat’s budget sows seeds of bloom. After the Global Financial Crisis of 2008, China and India were seen as engines of global growth. Of late Chinese engine seems to be sputtering into sluggish growth. The FM seems to be on track to exploit the ‘China plus one’ sentiments of the world. Momentum in Capex has been maintained through 11% increase that paves the path to enabling GDP to grow faster and stimulate private investment. All engines of growth have been triggered through the budget. Relaxation on standard deduction and simplification of the Income Tax Act 1961 will for sure boost personal consumption and private investment. Lowering of customs duty on variety of products will take care of the concern related to inverted duties. Education sector has received 31% increase in allocation, which is more than welcome. Skilling is the single most important task that can enhance much-required productivity as well as income generation.”
 
“Agriculture, capex, skilling, SMEs, women in development and the middle class have been the flavours of this budget. The GDP growth targeted by the Economic Survey for Viksit Bharat can be achieved through this budget. Fiscal deficit glide path has been maintained, which shows that the economy is growing in a disciplined and responsible manner. Interest costs will stay low. Inflation is softening, the fiscal deficit is under control, and the stage is set to take off on a higher growth trajectory."

Old Tax Regime

The following are the slabs under the old tax regime.

Source: Groww

What is Expected from Budget 2024?

It is expected that the government might introduce a higher exemption limit of Rs. 5 lakh, a higher standard deduction limit of up to Rs. 75,000.  It might also introduce a new tax slab or modify the current slab, especially for those earning between Rs 15-20 lakh.