The 2024 Budget boosted the standard deduction from Rs 50,000 to Rs 75,000 and established significant tax exemptions, which is a significant step for India’s employed class.
The working and middle classes in India received much-needed relief when Indian Finance Minister Nirmala Sitharaman unveiled the first budget of Prime Minister Modi’s new administration.
Sitharaman declared that the government expects to lose Rs 37,000 crore in income despite the adjustments to the tax slabs. To the advantage of about 40 million taxpayers, this action is intended to satisfy the long-standing desire for a new tax structure.
Income up to Rs 300,000 would be tax-free under the new tax system. The following are the updated tax rates:
5% tax on earnings from Rs 3 lakh to Rs 7 lakh
10% tax on earnings from Rs. 7 lakh to Rs. 10 lakh
15% tax on earnings from Rs. 10 lakh to Rs. 12 lakh
Income between Rs 12 lakh and Rs 15 lakh is subject to 20% tax.
30 percent tax on earnings beyond Rs 15 lakh
In addition, the tax deduction on family pensions has been recommended to increase from Rs 15,000 to Rs 25,000, and employers’ contributions to the National Pension Scheme have been raised from 10% to 14%.
