Latest Income tax slabs financial year 2024-25. What are the new Income tax slabs and rates after Budget 2024 announcement?

 

The Union Budget 2024 has introduced significant changes to the income tax slabs and rates, aiming to simplify the tax structure and provide relief to taxpayers. The new tax regime has six income slabs, with tax rates ranging from 5% to 39%.

The tax exemption limit has been increased to ₹3 lakhs, benefiting low-income earners who will not have to pay taxes up to this amount. This move is expected to boost disposable income and consumption.

The new tax regime also introduces a standard deduction of ₹50,000 for salaried individuals, reducing their taxable income and resulting in lower tax liabilities.

 

The highest tax rate of 39% will apply to individuals with an annual income above ₹20 crores, targeting high-net-worth individuals.

The new tax structure is designed to reduce compliance burdens and promote ease of doing business. It eliminates the complexity of multiple tax slabs and rates, making it easier for taxpayers to understand and comply with the tax laws.

The changes in the income tax slabs and rates are expected to benefit a large number of taxpayers, particularly those in the lower and middle-income brackets.

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However, some experts argue that the new tax regime may not benefit all taxpayers equally, and some may even face higher tax liabilities due to the removal of certain exemptions and deductions.

Overall, the new income tax slabs and rates aim to strike a balance between revenue generation and taxpayer relief, while also promoting economic growth and development.

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The impact of these changes will be closely watched in the coming months, as taxpayers and businesses adapt to the new tax structure.