Standard deduction in the new tax regime will be increased from Rs 50,000 to Rs 75,000, Finance Minister Nirmala Sitharaman said Tuesday as she announced the 2024 Union Budget.
Ms Sitharaman also announced revisions to tax slabs in the new regime. As a result, the Finance Minister told Parliament, salaried employees can save as much as Rs 17,500 in the new regime.
Existing new tax regime slabs (effective for FY 2023-24) were as follows:
Income up to Rs 3 lakh - Nil
Rs 3 lakh to Rs 6 lakh - 5 per cent
Rs 6 lakh to Rs 9 lakh - 10 per cent
Rs 9 lakh to Rs 12 lakh - 15 per cent
Rs 12 lakh to Rs 15 lakh - 20 per cent
Above Rs 15 lakh - 30 per cent
