On July 23, 2024, Union Finance Minister Nirmala Sitharaman announced revised direct income tax rates under the new regime while presenting the Union Budget for the fiscal year 2024-25. This marks the seventh time Sitharaman has presented the Budget.
New Tax Regime Rates:
– Income up to โน3 lakh: Nil
– Income from โน3 lakh to โน7 lakh: 5%
– Income from โน7 lakh to โน10 lakh: 10%
– Income from โน10 lakh to โน12 lakh: 15%
– Income from โน12 lakh to โน15 lakh: 20%
– Income above โน15 lakh: 30%
Previous Tax Regime Rates:
– Income up to โน3 lakh: Nil
– Income from โน3 lakh to โน6 lakh: 5%
– Income from โน6 lakh to โน9 lakh: 10%
– Income from โน9 lakh to โน12 lakh: 15%
– Income from โน12 lakh to โน15 lakh: 20%
– Income above โน15 lakh: 30%
The changes aim to simplify the tax structure and provide relief to taxpayers, potentially boosting consumption and economic growth.
