Income Tax Structure Unchanged In Budget 2024: Know Current Tax Slabs & Rates Under New Regime Vs Old Regime – News18

Income Tax Rates and Slabs: Even because the Interim Budget 2024-25 has been introduced by Finance Minister Nirmala Sitharaman on Thursday, February 1, the federal government has stored the tax slabs and charges unchanged.

“I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties,” Finance Minister Nirmala Sitharaman stated in her Budget Speech on Thursday.

Currently, these people having an annual earnings of as much as Rs 2.5 lakh are exempt from earnings tax, whereas the earnings as much as Rs 5 lakh will be tax-free beneath the brand new tax regime utilizing rebate beneath Section 87A.

Currently, there are two earnings tax regimes. Individuals can use any considered one of these. Under the outdated regime, the earnings tax is exempt as much as Rs 2.5 lakh, and over and above this, numerous deductions will be claimed beneath Section 80C, 80D, 80CCD, and many others, to scale back taxable earnings.

Under the brand new earnings tax regime, which was launched within the Budget 2021-22, no earnings tax is levied on an annual earnings of as much as Rs 5 lakh, with none deductions. However, if the annual earnings exceeds Rs 5 lakh, let’s say if it turns into Rs 5.5 lakh, earnings tax on the entire Rs 3 lakh is levied (earnings as much as Rs 2.5 lakh is exempt beneath each regimes). No deductions will be claimed beneath the brand new regime.

Current Income Tax Slabs and Rates Under Old Regime Vs New Regime:

Annual Income (in Rs) — Old Regime — New Regime

• as much as Rs 2,50,000 — Nil — Nil
• 2,50,000-5,00,000 — 5% — 5%
• 5,00,000-7,50,000 — 20% — 10%
• 7,50,000-10,00,000 — 20% — 15%
• 10,00,000-12,50,000 — 30% — 20%
• 12,50,000-15,00,000 — 30% — 25%
• Above 15,00,000 — 30% — 30%.