New Income Tax Slabs: Big change in income tax slab, check the new rates of new tax regime, how much tax will be levied on how much income

Income Tax New Slab Rates: Budget 2024: Modi government has announced a big change in the income tax slab. Finance Minister Nirmala Sitharaman made this announcement in her budget speech. This change in the tax slab has been made in the New Tax Regime. Along with the change in the tax slab, the benefit of standard deduction has also increased for the salaried taxpayers who have adopted the new tax regime. This standard deduction has been increased from the current Rs 50,000 to Rs 75,000. Due to all these changes, those taxpayers who will adopt the new tax regime will benefit. It is also possible that some of those taxpayers who have found the old tax regime beneficial till now may start finding the new regime better after the announcement of the new slab.

Proposed new tax slabs under the new tax regime

The new tax slabs announced by the Finance Minister in his budget speech under the New Tax Regime are as follows:

• Annual income up to Rs 3,00,000: No tax
• Annual income from Rs 3 lakh 1 to Rs 7 lakh: 5%
• Annual income from Rs 7 lakh to Rs 10 lakh: 10%
• Annual income from Rs 10 lakh to Rs 12 lakh: 15%
• Annual income from Rs 1.2 lakh to Rs 15 lakh: 20%
• Annual income above Rs 15 lakh: 30%

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What are the tax slabs in the new regime now

The existing tax slabs in the new tax regime, as applicable before the budget announcement, are as follows:

• Annual income up to Rs 3 lakh: No tax
• Annual income from Rs 3 lakh to Rs 1 lakh and Rs 6 lakh: 5% on income above Rs 3 lakh
• Annual income from Rs 1 lakh to Rs 9 lakh: Rs 15,000 + 10% on income above Rs 6 lakh
• Annual income from Rs 9 lakh to Rs 12 lakh: Rs 45,000 + 15% on income above Rs 9 lakh
• Annual income from Rs 1 lakh to Rs 15 lakh: Rs 90,000 + 20% on income above Rs 12 lakh
• Annual income above Rs 5 lakh 1: Rs 1.5 lakh + 30% on income above Rs 15 lakh

There is no change in the old tax regime

There has been no change in the old tax regime. Under the current rules, the slabs of the old tax regime are as follows:

• On annual income up to Rs 2.50 lakh: No tax
• Annual income from Rs 1 lakh to Rs 5 lakh: 5% on income above Rs 2.50 lakh
• Annual income from Rs 1 lakh to Rs 10 lakh: Rs 12,500 + 20% on income above Rs 5 lakh
• Annual income above Rs 10 lakh: Rs 1,12,500 + 30% on income above Rs 10 lakh

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What has changed in the Long Term Capital Gains Tax?

The government has also announced some important changes in the Long Term Capital Gains (LTCG) tax in the budget. Under the current rules, there is no tax on long term capital gains up to a maximum of Rs 1 lakh during a financial year. This limit has been increased to Rs 1.25 lakh annually. But along with this, a proposal has also been made in the budget to increase the rate of LTCG tax from the current 10 percent to 12.5 percent. That is, now there will be no tax on long term gains up to Rs 1.25 lakh in a year, but if the profit is more than this, then 12.5 percent tax will have to be paid on it instead of the previously applicable 10 percent.