Union Budget 2024: New tax slab vs old tax slab under new regime
Finance minister Nirmala Sitharaman presented her seventh consecutive budget in the parliament today. Announcing the Union Budget 2024, the finance minister proposed the revised tax slab under the new regime.
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Let's take a look at the new and the old tax slabs under the new tax regime.
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Proposed (new) tax slabs
₹0- 3 lakh - Nil
₹3-7 lakh - 5%
₹7-10 lakh - 10%
₹10-12 lakh - 15%
₹12-15 lakh - 20%
Above ₹15 lakh - 30%
Photo Credits: Unsplash
Old tax slabs
₹0-3 lakh - Nil
₹3-6 lakh - 5%
₹6-9 lakh - 10%
₹9-12 lakh - 15%
₹12-15 lakh - 20%
Above ₹15 lakh - 30%
Photo Credits: Unsplash
The proposed new tax slab will be effective from April 1, 2024 after the Budget is passed in the Parliament and receives President's assent.
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The new tax regime became effective from FY 2020-21. However, opting for the new tax regime was optional. The taxpayer could specifically opt for the old tax regime too.
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The old tax regime offered multiple deductions and exemptions whereas the new tax regime offers very few deductions.