Budget 2024: Key Insights into the New Income Tax Slabs Compared to the Old Income Tax Slabs

Budget 2024: Key Insights into the New Income Tax Slabs Compared to the Old Income Tax Slabs

New Income Tax vs Old Income Tax Slabs: Exploring Changes and Comparisons. As Finance Minister Nirmala Sitharaman prepares to present the interim budget for FY25 on February 1, 2024, we anticipate updates to the income tax structure. During an election year, an interim budget, also known as a vote on account, is presented instead of a comprehensive budget.

The common man eagerly awaits announcements related to tax rebates in the Union Budget. In Budget 2023, presented on February 1, 2023, Finance Minister Nirmala Sitharaman introduced adjustments to the slab rates. As we approach the end of 2023, let's review the changes in the new and old income tax slab rates.

Key Points on New vs Old Income Tax Slabs:

1. Understanding the Regimes: Take a moment to comprehend the differences between the new and old income tax regimes to determine which one suits you better.

2. Tax Exemption in New Regime: Under the changes proposed in the Union Budget 2023, individuals with an annual income of up to Rs. 7 lakh face no tax liability in the new tax regime. This regime also offers a standard deduction of Rs. 50,000, making it advantageous for those with incomes up to Rs. 7 lakh.

3. New Tax Slabs:

- No tax: If the income is up to Rs. 3 lakh

- 5% tax: on income between Rs. 3-6 lakh

- 10% tax: on income between Rs. 6-9 lakh

- 15% tax: on income between Rs. 9-12 lakh

- 20% tax: on income between Rs. 12-15 lakh

- 30% tax: on income of Rs. 15 lakh and above

4. Old Tax Slabs:

- Income up to Rs. 2.5 lakh is exempt from taxation.

- 5% tax on income between Rs. 2.5 to Rs. 5 lakh

- 15% tax on personal income from Rs. 5 lakh to Rs. 7.5 lakh

- 20% tax on income between Rs. 7.5 lakh to Rs. 10 lakh

- 30% tax on personal income above Rs. 10 lakh

5. Considerations for the Old Regime: The old tax regime, with exemptions on certain investments and expenditures, remains attractive for taxpayers dealing with house rent or having a home loan, as noted by personal finance experts.

This overview aims to help you grasp the changes and make informed decisions regarding the income tax regime that best suits your financial situation.

Also Read: CBDT Extends Deadline For Processing Refund Claims In ITRs For Assessment Years 2018-19 to 2020-21

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Krishna Gopal Varshney

An editor at apnokaca

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Krishna Gopal Varshney, Founder & CEO of Myitronline Global Services Private Limited at Delhi. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. Visit our website for latest Business News and IT Updates.

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