Budget 2024: New Tax Regime Announced with Higher Standard Deduction and Revised Slabs

GG News Bureau
New Delhi, 23rd July. Finance Minister Nirmala Sitharaman on Tuesday presented her seventh straight Budget for the fiscal year 2024-25. Highlighting the fiscal deficit estimated at 4.9% of GDP, Sitharaman expressed gratitude for the people’s faith in the Modi government, which has been re-elected for a historic third term.

Addressing India’s economic growth, Sitharaman emphasized the country’s resilience.

“Significant investments have been made to build robust infrastructure. Over 11 lakh crore rupees for capital expenditure have been allocated for infrastructure development, amounting to 3.4% of our GDP,” she stated.

The Finance Minister also mentioned that private investment in infrastructure will be promoted through viability gap funding and enabling policies.

Sitharaman announced a comprehensive review of the Income Tax Act 1961, aimed at reducing disputes and litigation, to be completed in six months.

She also proposed a review of the customs duty structure within the same timeframe, a reduction in the TDS rate on e-commerce to 0.1%, and the merging of two tax exemption regimes for charities into one.

Additionally, she proposed decriminalizing delays in TDS payments up to the tax filing date.

Details of the New Tax Slabs:

The standard deduction will be increased from Rs 50,000 to Rs 75,000 for those opting for the new tax regime.

• Income up to Rs 3 lakh: Nil

• Income from Rs 3-7 lakh: 5%

• Income from Rs 7-10 lakh: 10%

• Income from Rs 10-12 lakh: 15%

• Income from Rs 12-15 lakh: 20%

• Income above Rs 15 lakh: 30%