Budget 2024: Five things to know about current new income tax vs old income tax slabs

• December 6, 2023
• CA Chandan Agarwal's Office

Budget 2024: A look at the current new income tax regime vs old income tax regime

New income tax vs old income tax slabs: Finance Minister Nirmala Sitharaman will present Narendra Modi’s government interim budget for FY25 on 1 February 2024. During an election year, the government does not present a full-fledged Budget, instead, it prepares an interim budget. also known as a vote on account.

The aam aadmi looks forward to the tax rebate announcements in the Union Budget. Finance Minister Nirmala Sitharaman while presenting Budget 2023 on 1 February 2023, tweaked the slab rates

With the year 2023 heading toward the end, let’s take a recap of new vs old income tax slab rates

New vs old income tax slabs

1)New vs old income tax regime: If you still haven’t had a chance to understand the new and the old tax regime, now is a good time to see which one would work best for you.

2) As per the changes proposed in Union Budget 2023, no tax would be levied on people with annual income of up to ₹7 lakh under the new tax regime. If you have income up to ₹7 lakh then the new tax regime is better, as there is no tax up to ₹7 lakh and additionally, there is a standard deduction of ₹50,000 in the new tax regime.

3) New tax slabs

• No tax would be levied for income up to ₹3 lakh
•  Income between ₹3-6 lakh would be taxed at 5 per cent
• Income between ₹6-9 lakh would be taxed at 10 per cent
• Income between ₹9-12 lakh at 15 per cent
• Income between ₹12-15 lakh at 20 per cent
• Income of ₹15 lakh and above will be taxed at 30 per cent.

4) Old tax slabs

• Income up to ₹2.5 is exempt from taxation under old tax regime.
• Income between ₹2.5 to ₹5 lakh is taxed at the rate of 5 per cent under the old tax regime.
• Personal income from ₹5 lakh to ₹7.5 lakh is taxed at a rate of 15 per cent under the old regime
• Income between ₹7.5 lakh to ₹10 lakh is taxed at a rate of 20 per cent in the old regime
• Under the old regime personal income above ₹10 lakh is taxed at a rate of 30 per cent.

5) Since the old tax regime comes with exemptions on certain investments and expenditures, personal finance experts believe that it will remain attractive for taxpayers who pay house rent or have a home loan.

Source: https://www.livemint.com/budget/news/budget-2024-five-things-to-know-about-current-new-income-tax-vs-old-income-tax-slabs-11701761201635.html