Finance Minister Nirmala Sitharaman announced revisions to the tax rate structure under the new tax regime while presenting the Union Budget for 2024-2025. The revised tax rates are designed to simplify the tax system and provide significant relief to taxpayers.
Revised Tax Rates
Zero to ₹3 Lakh: Tax rate remains zero, providing a tax-free threshold.
₹3 Lakh to ₹7 Lakh: Tax rate set at 5%.
₹7 Lakh to ₹10 Lakh: Tax rate set at 10%.
₹10 Lakh to ₹12 Lakh: Tax rate set at 15%.
₹12 Lakh to ₹15 Lakh: Tax rate set at 20%.
Above ₹15 Lakh: Tax rate set at 30%.
Impact on Salaried Employees
Potential Savings:
The revised tax structure allows salaried employees to potentially save up to ₹17,500 annually in income tax. The new rates are intended to reduce the overall tax burden and make the new tax regime more appealing.
Simplification and Relief:
The revised brackets and rates aim to simplify the tax regime and provide clearer, more equitable taxation. By adjusting the tax rates across different income slabs, the government intends to ensure that the tax system better aligns with taxpayers’ income levels.