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 ₹3 lakh: Nil
– Income from ₹3 lakh to ₹7 lakh: 5%
– Income from ₹7 lakh to ₹10 lakh: 10%
– Income from ₹10 lakh to ₹12 lakh: 15%
– Income from ₹12 lakh to ₹15 lakh: 20%
– Income above ₹15 lakh: 30%
Previous Tax Regime Rates:
– Income up to ₹3 lakh: Nil
– Income from ₹3 lakh to ₹6 lakh: 5%
– Income from ₹6 lakh to ₹9 lakh: 10%
– Income from ₹9 lakh to ₹12 lakh: 15%
– Income from ₹12 lakh to ₹15 lakh: 20%
– Income above ₹15 lakh: 30%
The changes aim to simplify the tax structure and provide relief to taxpayers, potentially boosting consumption and economic growth.
