Budget 2024: Finance Minister Revises Direct Income Tax Rates Under New Regime

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Union Finance Minister Nirmala Sitharaman unveiled updated direct income tax rates under the new regime during the presentation of the Union Budget for the fiscal year 2024-25. This marks the seventh time Sitharaman has presented the Budget.

New Tax Regime Rates:

Income up to ₹3 lakh: Nil

Income from ₹3 lakh to ₹7 lakh: 5%

Income from ₹7 lakh to ₹10 lakh: 10%

Income from ₹10 lakh to ₹12 lakh: 15%

Income from ₹12 lakh to ₹15 lakh: 20%

Income above ₹15 lakh: 30%

Previous Tax Regime Rates:

Income up to ₹3 lakh: Nil

Income from ₹3 lakh to ₹6 lakh: 5%

Income from ₹6 lakh to ₹9 lakh: 10%

Income from ₹9 lakh to ₹12 lakh: 15%

Income from ₹12 lakh to ₹15 lakh: 20%

Income above ₹15 lakh: 30%

The New Tax Regime improvements are part of the government’s continuous effort to make this simplified, exemption-free system more appealing to salaried taxpayers. The objective is to motivate more individuals to transition to the NTR, which is presented as a straightforward alternative to the traditional tax structure.