FM announces new tax slabs

There is no tax till earnings of Rs 3l a year

If you earn Rs 15l+ annually, tax rate is 30%

In a significant move during the Union Budget 2024 presentation, Finance Minister Nirmala Sitharaman announced revised tax slabs aimed at providing relief to taxpayers and simplifying the tax structure. The new tax regime is structured to ease the burden on middle-income groups while ensuring equitable taxation.

Also Read: As Sitharaman presents Union budget 2024, a look at why she’s so successful

Under the new tax slabs, income up to Rs 3 lakh is exempt from tax, providing substantial relief to lower-income earners. For income ranging from Rs 3 lakh to Rs 7 lakh, the tax rate is set at 5%, ensuring that those in this bracket face a minimal tax burden.

For the next bracket, from Rs 7 lakh to Rs 10 lakh, the tax rate is 10%, while income from Rs 10 lakh to Rs 12 lakh will be taxed at 15%. This graduated increase is designed to maintain a fair progression of tax liabilities as income rises.

Interestingly, the tax rate for the Rs 12 lakh to Rs 15 lakh bracket has been set at 12%, slightly lower than the previous bracket, which provides a unique incentive for those earning in this range. However, income above Rs 15 lakh will attract a 30% tax rate, ensuring that higher earners contribute a fair share to the national exchequer.

These new tax slabs reflect the government’s effort to balance tax relief with revenue needs, promoting economic stability and growth. The revised rates are expected to boost disposable incomes for many taxpayers, thereby stimulating consumption and investment across the economy.