Budget 2024 Live Updates: FM Nirmala Sitharaman announces revised rate slabs under new tax regime

Budget 2024 Live Updates : Finance Minister Nirmala Sitharaman presents her seventh consecutive Union Budget 2024-25, becoming the first finance minister to present seven consecutive budget speeches, surpassing former Prime Minister Morarji Desai’s record.

As part of the Union Budget 2024–2025, Finance Minister Nirmala Sitharaman released updated income tax slabs under the new tax system. The new tax structure raises the tax exemption threshold to ₹3 lakh and decreases the number of tax slabs to five. The goal of this action is to help taxpayers by streamlining the tax code.

For Budget 2024 live update follow official website of finance minister.

Revised tax rate under New Tax Regime : 

1.  up to ₹3 lakh: No tax
2. Income from ₹3 lakh to ₹6 lakh: 5%
3. Income from ₹6 lakh to ₹9 lakh: 10%
4. Income from ₹9 lakh to ₹12 lakh: 15%
5. Income from ₹12 lakh to ₹15 lakh: 20%
6. Income above ₹15 lakh: 30%

These changes aim to simplify the tax structure and provide relief to taxpayers in Budget 2024 live updates. 

What deductions are available under the new regime?

Budget 2024 live updates : The available deductions and exemptions under the new tax regime are more restricted than under the previous one. 

The following are some of the major deductions you are eligible to claim:

 Standard Deduction: ₹50,000 for salaried individuals; 

Family Pension: ₹15,000 or 1/3rd of the pension, whichever is lower; 

Employer’s Contribution to NPS: Deduction under Section 80CCD(2); 

Interest on Home Loan: Deduction for interest on a home loan for a let-out property under Section 24(b); 

Agniveer Corpus Fund: Deduction for the amount paid or deposited under Section 80CCH(2).

But under the new system, a number of popular exemptions and deductions are no longer available, including the following: 

Section 80C (except from the Agniveer Corpus Fund), Section 80D, Section 80E, and House Rent Allowance (HRA), Leave Travel Allowance (LTA), and others.

How will this impact my overall tax liability?

The impact of the new tax slabs on your Your total income and the amount of allowable deductions will determine your overall tax obligation. 

Here’s a simplified explanation of it: Determine Your Total Income: Add up all of your revenue streams, including interest, rental income, and pay. 

Use the Updated Tax Slabs: Based on your overall income, determine your tax burden using the updated tax slabs. 

Take Subtractions: Take out any deductions that are allowed under the new system (such as the employer’s NPS contribution and the standard deduction). 

For instance, if ₹10 lakh is your total income:

Income up to ₹3 lakh: No tax

Income from ₹3 lakh to ₹6 lakh: 5% of ₹3 lakh = ₹15,000

Income from ₹6 lakh to ₹9 lakh: 10% of ₹3 lakh = ₹30,000

Income from ₹9 lakh to ₹10 lakh: 15% of ₹1 lakh = ₹15,000

Total tax = ₹15,000 + ₹30,000 + ₹15,000 = ₹60,000

 any eligible deductions (e.g., standard deduction of ₹50,000):

Taxable income = ₹10 lakh – ₹50,000 = ₹9.5 lakh

Recalculate tax based on ₹9.5 lakh.

I can assist you in calculating a more precise estimate if you provide me specifics about your income and deductions.

for more intresting update follow our official website.