Nirmala Sitharaman Unveils Income Tax Overhaul, Raises Standard Deduction to Rs 75,000

In presenting the Union Budget 2024, Finance Minister Nirmala Sitharaman announced a comprehensive review of the Income Tax Act of 1961. “This review aims to reduce disputes and litigation and is expected to be completed within six months,” she stated.

The finance minister also declared an increase in the standard deduction from Rs 50,000 to Rs 75,000.

Budget 2024 Updates: New Tax Regime

Tax rate structure in the new regime will be revised as given:

Up to Rs 3 lakh: 0%
Rs 3-7 lakh: 5%
Rs 7-10 lakh: 10%
Rs 10-12 lakh: 15%
Rs 12-15 lakh: 20%
Above Rs 15 lakh: 30%
Salaried employees in the new tax regime are projected to save up to Rs 17,500 in income tax.