Budget 2024: No change in tax rates for common man; here are slabs under new and old regime

Budget 2024: Finance Minister Nirmala Sitharaman in her Budget presentation announced that there is no change in the tax rates for both direct and indirect taxes, including import duties. 

She said that the number of tax filers has swollen 2.4 times and the direct tax collection has trebled since 2014. Regarding the processing time of tax return, she informed that the days have been reduced to 10 days from 93 days in 2014.

Income Tax Slab Rates

India currently has two tax regimes - Old and New tax regime, allowing taxpayers to choose the regime they want. The Modi government introduced the new tax regime in 2020 and made it default regime in Budget 2023. 

Also Read: Budget 2024: No changes in tax rates for direct, indirect taxes

While there is only one slab rate under the new tax regime, the old tax regime has 3 different rates. Here are the different slabs.

Slab rates under new tax regime

• Upto Rs 3,00,000                   -    Nil
• Rs 3,00,001 to Rs 6,00,000     -    5% (tax rebate under Section 87A applicable)
• Rs 6,00,001 to Rs 9,00,000     -    10% (tax rebate under Section 87A applicable on income                                                                 up to 7 lakh)
• Rs 9,00,001 to Rs 12,00,000   -    15%
• Rs 12,00,001 to Rs 15,00,000 -     20%
• >Rs 15,00,000                        -     30%

Slab rates under old tax regime

The old tax regime is divided into three categories. They include Indian residents aged <60 and all the non-residents, resident senior citizens and resident super senior citizens.

• Up to Rs 2.5 lakh                - Nil
• Rs 2,50,001 - Rs 5,00,000   - 5%
• Rs 5,00,001 - Rs 10,00,000 - 20%
• >Rs 10,00,000                    - 30%

The exemption limit for senior citizens aged over 60 but less than 80 years is Rs 3 lakh and citizens over 80 years are exempted Rs 5 lakhs