Budget 2024: How much income tax will you pay now if you earn ₹15 lakh?

Finance Minister Nirmala Sitharaman announced changes in income tax slabs under the new tax regime in the Union Budget 2024, which was presented on July 23.

The rate of taxation remains unchanged. However, the size of each of the slabs, excluding the initial zero rate for income up to ₹3 lakh, has been tweaked. The ₹3-6 lakh slab has been expanded to ₹3-7 lakh. The rate of taxation, which stands at 5 per cent, remains unchanged.

Similarly, the other new slabs are ₹7 lakh to Rs10 lakh at 10 per cent, Rs10 lakh to Rs12 lakh at 15 per cent, ₹12 lakh to ₹15 lakh at 20 per cent and income above ₹15 lakh at 30 per cent.

Here's your tax outgo now under the new tax regime if you earn more than ₹15 lakh per annum. A person earning ₹15 lakh will now pay ₹1,50, 000 in taxes and will be left with ₹13,50,000, according to Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited.

Under the new tax regime, the finance minister has increased the standard deduction limit to ₹75,000 from ₹50,000.

According to the finance minister, the revised standard deduction limit will provide relief to about four crore salaried individuals and pensioners.

Apart from the change in tax slabs and standard deduction, for pensioners, the deduction on family pension has been proposed to be raised to ₹25,000 from ₹15,000. This change is aimed at relieving those who receive a family pension, ensuring better post-retirement financial stability.

Sitharaman also proposed to review and simplify the Income Tax Act, 1961.

"I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in 6 months," the finance minister stated.

The budget session of Parliament began on July 22 with the economic survey presentation. The session is scheduled to conclude on August 12.