![Budget 2024-25: Tax Slabs under New Regime Changed](http://media.assettype.com/news-crunch%2F2024-07%2Fef119673-68f7-4dc1-9e1d-f8f3c1c3bb1a%2FTax%20Slabs.jpg?w=480&auto=format%2Ccompress&fit=max)
In Budget 2024-25 Finance Minister Nirmala Sitharaman announced two major changes in the income tax rates and slabs for those adopting the new income tax regime. She announced standard deduction from Rs 50,000 to Rs 75,000 a year.
Revised new tax regime slabs. Key Changes are…
Standard deduction increased from Rs 50,000 to Rs 75,000.
New tax slabs introduced with reduced tax rates.
No tax up to Rs 3,00,000 (previously Rs 2,50,000).
5% tax rate applies up to Rs 7,00,000 (previously Rs 3,00,000).
10% tax rate applies up to Rs 10,00,000 (previously Rs 5,00,000).
15% tax rate applies up to Rs 12,00,000 (previously Rs 7,50,000).
20% tax rate applies up to Rs 15,00,000 (previously Rs 10,00,000).
Salaried employee in new tax regime will save up to Rs 17,500 in income tax.
Comparison of the old and new tax slabs
Old Tax Slabs (FY 2023-24) -
Rs 0 - Rs2,50,000: No tax
Rs 2,50,001 – Rs 3,00,000: 5%
Rs 3,00,001 – Rs 5,00,000: 5%
Rs 5,00,001 – Rs 6,00,000: 10%
Rs 6,00,001 – Rs 7,50,000: 10%
Rs 7,50,001 – Rs 9,00,000: 15%
Rs 9,00,001 – Rs 10,00,000: 15%
Rs 10,00,001 - Rs 12,00,000: 20%
Rs 12,00,001 – Rs 12,50,000: 25%
Rs 12,50,001 and above: 30%
New Tax Slabs (FY 2024-25) -
Rs 0 – Rs 3,00,000: No tax
Rs 3,00,001 - Rs7,00,000: 5%
Rs 7,00,001 – Rs 10,00,000: 10%
Rs 10,00,001 - Rs 12,00,000: 15%
Rs 12,00,001 – Rs 15,00,000: 20%
Rs 15,00,000 and above : 30%
In 2020, Nirmala Sitharaman introduced a new personal income tax regime in addition to the existing personal income tax slabs. The new slabs were introduced as a simplified tax plan but those opting for the new income tax regime were not eligible for various tax exemptions under different IT Act sections.