The latest Budget 2024, has changed the Income tax slab rate for Financial Year 2024-25. The new budget has split income tax rules for new and old tax system.
The types of income tax slabs depend on different people’s segments. Let’s understand the new income tax regime and old income tax regime.
- Old Tax System-Income tax for those who want to claim income tax reductions and exemptions
- New tax System-Income tax for those who do not want to claim income tax reduction and exemptions.
Table of Contents
New Income tax Slab Rate FY 2024-25
There is no change in the income tax slab rate in the Old tax regime. However, a new limit has been added under new tax regime.
Under the New tax regime FY 2023-24 ( last year) , there were limit from 3 to 6 lac, which has now increased to 7 lac.
Earlier, under the new tax regime, there were slab rates of up to 6 lakh. But this year, it has increased to seven lakh slab rates.
What is the Standard deduction?
The standard deduction is available for the salaried and the pensioners (including family pensioners). The standard deduction is increased from Rs. 50,000 to Rs. 75,000 under new tax system.
This increase in the standard deduction will save in taxes for people. It will also enhance the simultaneous shift to the new tax system.
Other changes
Family pension deduction increased from 15K to 25K.
Deduction to employer contribution to NPS increased to 14% of employee salary.
Conclusion
Ideally one should calculate income tax from the old and new tax system. Opt for a system that bring you low taxes.
