Budget 2024: This year’s income tax slab remains unchanged. These are the specifics of the previous and current tax regimes.

The income tax refund is the one aspect of the budget that the salaried class looks forward to. On February 1, 2024, Finance Minister Nirmala Sitharaman presented the Interim Budget 2024, maintaining the same tax slab rates for the old and new income tax regimes.

On Thursday, February 1, 2024, Sitharaman made her budget address.”In accordance with the convention, I propose to maintain the current tax rates for both direct and indirect taxes and to make no changes to the tax system, including import duties,” she stated.

It makes sense from a prudential standpoint for the Finance Minister to have refrained from making any changes to the rates and slabs of personal income tax in the Interim Budget. “Fiscal consolidation must be balanced against sufficient capital expenditure to support growth in light of the ongoing global headwinds,” stated Ashish Aggarwal, Director of Acube Ventures.

Nonetheless, considering the high levels of inflation and the underlying signs of a recession in the main global economies, individual taxpayers were hoping for some respite. “In particular, salaried professionals have had to deal with the double whammy of uncertain job markets and rising living expenses without receiving commensurate wage increases from employers. Certain features would have given some cushion, such as an increased standard deduction, improved housing loan interest exemptions, or adjustments to 80C instruments. Therefore, it is reasonable for the salaried class to be somewhat disappointed with personal taxes,” stated Ashish Aggarwal.

tax slabs under the new system

Up to ₹3 lakh in income, there will be no tax imposed.

-There would be a 5% tax rate on income between ₹3-6 lakh (a tax refund is granted under Section 87A).

-A 10% tax rate would apply to income between ₹6 and ₹9 lakh (a tax rebate of up to ₹7 lakh is possible under Section 87A).

-Average income of ₹9–12 lakh at 15%

-Average income of ₹12–15 lakh at 20%

-Taxation on income over ₹15 lakh will be thirty percent.

Under the new tax regime, the rates of taxation apply to all categories of individuals, including senior citizens and super senior citizens.

income tax budget live updates for 2024
tax slabs from the previous regime

1) Under the previous tax system, income up to ₹2.5 is not subject to taxation.

2) Under the previous tax system, income between ₹2.5 and ₹5 lakh was subject to a 5% tax rate.

3) Under the previous system, personal income between ₹5 lakh and ₹10 lakh was subject to a 20% tax rate.

4) Personal income over ₹10 lakh was subject to 30% tax under the previous system.

Under the previous tax system, senior citizens over 60 but under 80 could deduct up to ₹3 lakh from income taxes, and super senior citizens over 80 may deduct up to ₹5 lakh.

The middle class was looking forward to certain income tax revisions so they might reduce their tax liability.

Whether a new or re-elected administration takes office in July, it will propose the entire budget.