Budget 2024: Tax slabs revised in new regime, standard deduction now Rs 75,000

In a relief to the middle class, Finance Minister Nirmala Sitharaman has announced changes to the new tax regime, increasing the standard deduction to Rs 75,000 from Rs 50,000. 

In a landmark announcement during the Union Budget 2024, Finance Minister Nirmala Sitharaman introduced major revisions to personal income tax rates and deductions.  In her Budget speech, spanning 1 hour 40 minutes, Sitharaman also announced relief for taxpayers who have opted for the new tax regime, hiking the standard deduction from Rs 50,000-Rs 75,000. Salaried employees under new tax regime to save up to Rs 17,500 annually in taxes due to changes proposed in FY25 Budget, said Finance Minister Nirmala Sitharaman on Tuesday.

A look at new tax slabs

• Up to Rs 3 lakh, the tax is NIL
• From Rs 3 lakh to Rs 7 lakh, the tax rate is 5%
• From Rs 7 lakh to Rs 10 lakh, the tax rate is 10%
• From Rs 10 lakh to Rs 12 lakh, the tax rate is 15%
• From Rs 12 lakh to Rs 15 lakh, the tax rate is 20%
• Above Rs 15 lakh income, the tax rate is 30%

Finance Minister Nirmala Sitharaman made history as she presented her seventh consecutive Budget for the fiscal year 2024-25 today. 

Sitharaman said that the Budget focuses on on four major classes – poor, women, youth and farmer. She also announced the Prime Minister’s package of five schemes with a Rs 2 lakh crore outlay for employment, skilling and other opportunities.

Sitharaman said the Budget's nine priorities include productivity, jobs, social justice, urban development, energy security, infrastructure, and reforms. Sitharaman announced an allocation of Rs 2 lakh crore for job creation over the next five years. The government will launch three employment-linked schemes based on enrolment in Employees' Provident Fund Organisation (EPFO).