New Income Tax Slabs AY 2024-25 For Salaried People: What You Need To Know

The Union Budget 2024-25 has been announced by our Finance Minister Nirmala Sitharaman which included a new income tax regime for salaried individuals. The budget has revised tax slabs, providing taxpayers with an extra opportunity to save Rs 17,500 in taxes. Also, the standard deduction has been lifted to Rs 75,000. Scroll down to learn more about this new income tax slab for salaried people.

What Is An Income Tax Slab?

For the unversed, the income tax is applied to individuals based on a slab system, where different tax rates are assigned to people with different income ranges. As the person’s income increases, the tax rates also increase.

New Income Tax Slabs For AY 2024-25 For Salaried People

There is a big relief for salaried individuals in this new tax regime leading to a savings of Rs 17,500 in taxes annually.

For salaried individuals here are the new income tax slabs:

No Tax up to 3 Lakh of income

From Rs 3 lakh to Rs 7 lakh the tax rate is 5%

From Rs 7 lakh to Rs 10 lakh the tax rate is 10%

From Rs 10 lakh to Rs 12 lakh the tax rate is 15%

From Rs 12 lakh to Rs 15 lakh the tax rate is 20%

For above Rs 15 lakh income the tax rate is 30%

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Income Tax Slabs For AY 2023-24 For Salaried People

For the salaried individuals here are the old income tax slabs:

No Tax up to 2.5 Lakh

From Rs 2.5 Lakh to Rs 5 Lakh the tax rate is 5%

From Rs 5 Lakh to Rs 10 Lakh the tax rate is 20%

For above Rs 10 Lakh income tax rate is 30%

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The new changes are likely to provide a big boost to middle-class taxpayers. Additionally, the government has also increased the deduction limit for employers' contributions to the National Pension System from 10% to 14%. The deduction for family pensions is also increased from Rs 15,000 to Rs 25,000.

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