New Income Tax Slab Announced

New Delhi: A new Income Tax Slab has been announced in the Union Budget 2024 that is being presented by FM Nirmala Sitharaman. According to reports, “for those opting for the new tax regime, the standard deduction for salaried employees to be increased from Rs 50,000 to Rs 75,000,” Finance Minister Nirmala Sitharaman said while announcing the Union Budget 2024.

The slabs will be as follows, “On personal income tax rates in new tax regime, FM Sitharaman says, “Under new tax regime, here are the tax rates:

The tax rate structure to be revised as follows:

Rs. 0-Rs 3 lakh -Nil;

Rs. 3-7 lakh -5%;

Rs. 7-10 lakh-10%;

Rs. 10-12 lakh-15%;

Rs. 12-15 lakh- 20%;

Above Rs. 15 lakh-30%

FM Sitharaman further added, “As a result of these changes, a salaried employee in the new tax regime stands to save up to Rs 17,500. Apart from these, I am also making some other changes. Revenue of about Rs 37,000 crore will be forgone while revenue of about Rs 30,000 crore will be additionally mobilised. Thus, the total revenue foregone is about Rs 7,000 crores annually.”

“I am now announcing a comprehensive review of the Income-tax Act, 1961. The purpose is to make the Act concise, lucid and easy to read and understand. This will reduce disputes and litigation, thereby providing tax certainty to the taxpayers. It will also bring down the demand embroiled in litigation. It is proposed to be completed in six months,” she said in her Budget speech.

“A beginning is being made in the Finance Bill by simplifying the tax regime for charities, TDS rate structure, provisions for reassessment and search provisions and capital gains taxation,” she said. As per the proposal, the two tax exemption regimes for charities are proposed to be merged into one. The 5 per cent TDS rate on many payments is being merged into the 2 per cent TDS rate and the 20 per cent TDS rate on repurchase of units by mutual funds or UTI is being withdrawn. The TDS rate on e-commerce operators is proposed to be reduced from one to 0.1 per cent.

“Moreover, credit of TCS is proposed to be given in the TDS to be deducted from salary. Further, I propose to decriminalize delay for payment of TDS up to the due date of filing statement for the same. I also plan to provide a standard operating procedure for TDS defaults and simplify and rationalise the compounding guidelines for such defaults,” the Finance Minister said.