Income Tax Budget 2024: With the new tax regime slabs being revised, THIS salary bracket stands to benefit the most

Finance Minister Nirmala Sitharaman in Budget 2024 revised the new tax regime and introduced the tax rates which are lower than the existing ones. Ms Sitharaman presented her record seventh consecutive Union Budget 2024-25 today and made history as the first finance minister to present seven consecutive Budget speeches.

Salaried taxpayers who fall in the tax bracket of ₹6-7 lakh and ₹9-10 lakh stand to benefit since their tax rate has declined from 10 percent to 5 percent, and from 15 percent to 10 percent, respectively.

Besides, the standard deduction has been raised from ₹50,000 to ₹75,000, thus adding more savings for salaried taxpayers.

Check the new tax regime rates here:

Who stands to benefit?

So, now someone who earns ₹7 lakh now has to pay 5 percent on his income between ₹3-7 lakh, whereas it was 10 percent earlier.

Similarly, someone with an income of ₹10 lakh now has to pay 10 percent for income between 7-10 lakh whereas earlier it was 15 percent for a portion of income (i.e., above ₹9 lakh).

Salaried taxpayers in the new tax regime stand to save ₹17,500 in income tax, said FM Nirmala Sitharaman.

“Salaried taxpayers who fall in the highest tax bracket i.e. 30 percent stand to benefit incrementally on their income. Moreover, there is additional saving on increase in standard deduction i.e., from 50,000 to 75,000,” said Chartered Accountant Chirag Chauhan from Mumbai-based CA Chauhan & Company.

"Budget 2024 brought good news for salaried Taxpayers as with increase in Standard Deduction to Rs. 75000 and Reduction in Slabs of New Tax Regime, they can effectively save Tax of Rs. 17500," says Chartered Accountant Pratibha Goyal, partner, PD Gupta & Company, a Delhi-based firm.