Tax Rate & Slab rate changes as per Budget 2024 (Income Tax Act 1961)

"The Budget 2024 has brought several important changes to income tax rates and provisions affecting individuals and businesses. Below is a detailed overview of the key changes and features of the income tax framework as outlined in the budget"

The Union Budget 2024-25 introduced several key changes to the Indian Income Tax Act, 1961. Here are some of the highlights:

1. Revision of Tax Slabs: The new tax regime under section 115BAC has been revised to provide relief to taxpayers. The revised tax slabs are as follows:

   • Up to ₹3,00,000: Nil

   • ₹3,00,001 to ₹7,00,000: 5%

   • ₹7,00,001 to ₹10,00,000: 10%

   • ₹10,00,001 to ₹12,00,000: 15%

   • ₹12,00,001 to ₹15,00,000: 20%

   • Above ₹15,00,000: 30%

2. Increase in Standard Deduction: The standard deduction for salaried individuals has been increased from ₹50,000 to ₹75,000.

3. Simplification of Taxation of Capital Gains: The holding period for classifying assets as long-term has been simplified to 12 months for listed securities and 24 months for other assets.

4. Abolition of Angel Tax: The budget proposes to abolish the angel tax to support startups and innovation.

5. Simplification of Tax Laws: The Finance Minister announced a comprehensive review of the Income Tax Act to simplify the existing tax framework, reduce disputes, and provide tax certainty to taxpayers.

These changes aim to make the tax system more favorable for middle-income earners, encourage higher compliance, and ease the financial burden on taxpayers

Conclusion

The Budget 2024 is designed to balance the need for revenue generation with the objective of promoting economic growth and individual taxpayer relief. These changes can significantly influence the tax planning strategies of individuals and businesses alike.

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