Budget 2024: Higher Standard Deductions, Revised Tax Slabs, and Pension ReliefBudget 2024: Higher Standard Deductions, Revised Tax Slabs, and Pension Relief

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%