Interim Budget 2024: Here’s the latest on income tax slabs and rates for new and old tax regimes

Union Finance Minister Nirmala Sitharaman, during the presentation of the Interim Budget 2024-25 on Thursday, left the existing tax slab rates unchanged for both new and old income tax regimes.

The government has reduced and rationalised tax rates. Under the new tax scheme, there is now no tax liability for taxpayers with income up to Rs 7 lakh.

How much tax do I have to pay? Calculate now

Ashish Aggarwal, Director of Acube Ventures, said, “The Finance Minister’s decision to not tinker with personal income tax slabs and rates in the Interim Budget is understandable from a prudence perspective. With global headwinds still persisting, fiscal consolidation needs to be balanced against adequate capital expenditure to nurture growth.”

Tax slabs have remained unchanged for 11 years, and no alterations were anticipated for them in the Interim Budget. However, individuals in the category of captive tax-savers earning Rs 12 lakh or more might find reason to believe that the Budget could have provided additional benefits for them.

While the Budget speech references buoyant tax collections and stable GST implementation, that prosperity is yet to permeate to the middle class. “Aspects like a higher standard deduction, enhanced housing loan interest exemptions or a tweaking of 80C instruments would have provided some cushion. So, some disappointment in personal taxation among the salaried class is valid. One hopes that as the macro fundamentals stay on track, there is room for pragmatic concessions on individual tax burdens sooner rather than later. For consumption-led growth to sustain, leaving more money in the hands of the middle class pays economic dividends,” added Aggarwal.

Check the latest income tax slab and rates here

Adhil Shetty, CEO of BankBazaar.com, said that Finance Minister Sithraman announced no change in direct or indirect tax rates in the interim budget 2024. She did mention the changes made in the new tax regime last year when the rebate was increased from Rs 5 lakh to Rs 7 lakh. The number of slabs was also reduced to five, and the tax exemption limit was increased to Rs 3 lakh in the 2023 budget. “The modifications to the tax slab in the new regime were significant. Last year’s announcement tried to cover most of the working population. Nevertheless, reports indicate that individuals continue to adhere to the old regime, primarily due to factors such as having a home loan, investments for tax savings, family health insurance, retirement savings, and more. Their commitment to tax-saving strategies deters them from transitioning to the new regime,” said Shetty.

Also read: Government to withdraw previous direct tax claims, offering relief to millions of taxpayers

Also read: Interim Budget 2024: Processing time of income tax returns slashed to just 10 days, says FM Sitharaman

Also read:  Gold and silver prices today: Yellow metal prices are trading steady