No Income Tax up to ₹3 Lakh under revised personal income tax slabs
PTK NEWS MONITORING DESK
New Delhi, July 23: Union Finance and Corporate Affairs minister Nirmala Sitharaman today announced changes in personal income tax rates to reduce the tax outgo of masses. Revised tax slabs includes no tax to be paid for salaried employees earning up to ₹3 lakhs.
The Finance Minister presented the first Union Budget of the Modi 3.0 government and her seventh consecutive one during the Monsoon Session of Parliament. The budget session of Parliament began on July 22 and, according to schedule, will end on August 12.
New Personal Income Tax Slabs for FY 2024-25
₹0- ₹3 Lakh Nil
₹3- ₹7 Lakh 5 per cent
₹7- ₹10 Lakh 10 per cent
₹10- ₹12 Lakh 15 per cent
₹12- ₹15 Lakhs 20 per cent
Above ₹15 Lakhs 30 per cent
The finance minister added that salaried employees under the new tax regime will save up to ₹17,500 annually in taxes due to the changes proposed in the FY25 Budget.
FM Sitharaman made two announcement with regards to new tax regime:
-The standard deduction for salaried employees is proposed to be increased from ₹50,000 to ₹75,000
-Deduction on family pension for pensioners is proposed to be enhanced from ₹ 15,000 to ₹ 25,000
“This will provide relief to about four crore salaried individuals and pensioners.” Sitharaman noted.
The government raised the deduction limit to 14 per cent from 10 per cent for employers’ contribution for the National Pension System (NPS).
“As a result of these proposals, revenue of about ₹ 37,000 crore – ₹ 29,000 crore in direct taxes and ₹ 8,000 crore in indirect taxes – will be forgone while revenue of about ₹ 30,000 crore rupees will be additionally mobilized. Thus, the total revenue forgone is about ₹ 7,000 crore annually.” FM Sitharaman said.
The government also announced that it will undertake a comprehensive review of the Income Tax Act to make it easy to read.
Presenting the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman also said the government will come out with SoP (standard operating procedure) for TDS defaults and simplify and rationalise compounding of such offences.
FM Sitharaman added that two tax exemption regimes for charitable trusts will be merged into one.
Also, 58 per cent of corporate tax have come from simplified tax regime in FY23.
More than two-thirds of individuals availed of the new income tax regime, Sitharaman said in the Lok Sabha.
