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Updated February 1st, 2024 at 13:10 IST

Budget 2024: Tax Rates Remain Unchanged

"I propose to retain the same tax rates for direct and indirect taxes including import duties," said FM Sitharaman.

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Tax-savvy investing
No change in tax rates | Image:Freepik
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Union Budget 2024: While presenting Interim Budget 2024, Union Finance Minister Nirmala Sitharaman kept the tax slab rates unchanged for both new and old income tax regimes. "I propose to retain the same tax rates for direct and indirect taxes including import duties," said FM Sitharaman.  Moreover, in line with the government's vision to improve ease of living and ease of doing business, she announced to improve tax-payer services. "There are a large number of petty, non-verified, non-reconciled or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing anxiety to honest tax-payers and hindering refunds of subsequent years," FM added. She proposed to withdraw such outstanding direct tax demands up to Rs 25,000 for the period up to financial year 2009-10 and up to Rs 10,000 for financial years 2010-11 to 2014-15. "This is expected to benefit about a crore tax-payers," Sitharaman stated.  

New regime tax slabs

In the new tax regime, the tax rates are uniform across all categories of individuals, including regular individuals, senior citizens, and super senior citizens.  

  • No tax for income up to ₹3 lakh
  • Income between ₹3-6 lakh would be taxed at 5 per cent (tax rebate under Section 87A is available)
  • Income between ₹6-9 lakh would be taxed at 10 per cent (tax rebate under Section 87A on income up to ₹7 lakh is available)
  • 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.

Old regime tax slabs 

Under the old tax regime, senior citizens aged above 60 years but less than 80 years enjoy an income tax exemption limit of up to ₹3 lakhs, while super senior citizens aged above 80 years had a higher exemption limit of up to ₹5 lakhs.  

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  • No tax for income up to ₹2.5 lakh under the old tax regime.
  • Income between ₹2.5 to ₹5 lakh would be taxed at the rate of 5%.
  • Income from ₹5 lakh to ₹10 lakh would be taxed at a rate of 20%.
  • Income above ₹10 lakh would be taxed at a rate of 30%.

For the unversed, this is the last budget of Prime Minister Narendra Modi-led government's second term. The full budget will be presented in July. 

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Published February 1st, 2024 at 12:05 IST

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