In the last fiscal year, over two-thirds of individual taxpayers opted for the new personal income tax regime, with more than 8.61 crore IT returns filed in 2023-24. Finance Minister Nirmala Sitharaman announced a 50% increase in the standard deduction to ₹75,000 to benefit the middle class..
The new tax regime aims to boost consumption by increasing disposable income. Sitharaman stated that salaried employees could save up to ₹17,500 annually in income tax due to the revised slabs and higher standard deduction, benefiting about four crore salaried individuals and pensioners.
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The standard deduction for salaried employees is proposed to rise from ₹50,000 to ₹75,000 annually, while the deduction on family pensions for pensioners is proposed to increase from ₹15,000 to ₹25,000. These changes are intended to provide significant relief and increase disposable income.
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Revised Tax Slabs (Effective April 1, 2024)
| Income Range | Tax Rate |
| 0-3L | Nil |
| 3-7L | 5% |
| 7-10L | 10% |
| 10-12L | 15% |
| 12-15L | 20% |
| Above 15L | 30% |
Existing Tax Slabs
| Income Range | Tax Rate |
| 0-3L | Nil |
| 3-6L | 5% |
| 6-9L | 10% |
| 9-12L | 15% |
| 12-15L | 20% |
| Above 15L | 30% |
