Lagatar24 Desk
New Delhi: In the 2024 budget, Finance Minister Nirmala Sitharaman introduced significant tax reforms aimed at benefiting salaried individuals and pensioners. The new tax regime slabs have been revised, and the standard deduction increased from Rs 50,000 to Rs 75,000. However, the standard deduction under the old tax regime will remain unchanged at Rs 50,000. For family pensioners, the deduction will rise from Rs 15,000 to Rs 25,000 under the new regime.
These changes are expected to benefit around four crore salaried individuals and pensioners. The revised tax slabs under the new regime are as follows:
- Up to Rs 3,00,000: Nil
- Rs 3,00,001 to Rs 7,00,000: 5%
- Rs 7,00,001 to Rs 10,00,000: 10%
- Rs 10,00,001 to Rs 12,00,000: 15%
- Rs 12,00,001 to Rs 15,00,000: 20%
- Above Rs 15,00,000: 30%
Sitharaman highlighted that individuals opting for the new regime could save up to Rs 17,500 annually. Additionally, she announced a comprehensive review of the Income Tax Act of 1961, aiming to simplify its language, reduce uncertainty, and minimize litigation.
The Finance Minister emphasized the government’s ongoing efforts to simplify the tax structure, noting that more than two-thirds of personal taxpayers opted for the new tax regime in the financial year 2023-24. Sitharaman also introduced the Vivaad to Vishwas scheme 3.0 for 2024, further demonstrating the government’s commitment to easing tax compliance.
Another notable announcement was the increase in the National Pension System (NPS) deduction on employers’ contributions to employees’ basic salaries, which has been raised from 10% to 14%. This adjustment will apply to both public and private sector companies under the new regime.
