"Save As Much As ₹ 17,500": Finance Minister on New Tax Regime Slabs
Standard deduction in the new tax regime will be increased from ₹ 50,000 to ₹ 75,000, Finance Minister Nirmala Sitharaman said Tuesday as she announced the 2024 Union Budget. Finance Minister Ms Sitharaman also announced revisions to tax slabs in the new regime. As a result, the Finance Minister told Parliament, salaried employees can save as much as ₹ 17,500 in the new regime. It will also, she said, provide salaried individuals with higher tax savings and more disposable income. Existing new tax regime slabs (effective for FY 2023-24) were as follows: Income up to ₹ 3 lakh - Nil Rs 3 lakh to ₹ 6 lakh - 5 per cent Rs 6 lakh to ₹ 9 lakh - 10 per cent Rs 9 lakh to ₹ 12 lakh - 15 per cent Rs 12 lakh to ₹ 15 lakh - 20 per cent Above ₹ 15 lakh - 30 per cent The increase in standard deduction was one of the most anticipated ahead of the budget speech. Industry experts speculated this could double to ₹ 1,00,000, but Ms Sitharaman fell slightly short. In addition, deduction on fami...