Top News

Budget 2024 Income Tax changes EXPLAINED: Salaried taxpayers to save Rs 17,500! How standard deduction hike, income tax slab changes in new tax regime will benefit you – Times of India

pressclubindia
Budget 2024 Income Tax changes EXPLAINED: Salaried taxpayers to save Rs 17,500! How standard deduction hike, income tax slab changes in new tax regime will benefit you – Times of India



Price range 2024 earnings tax adjustments defined: Salaried taxpayers have motive to cheer! Finance Minister Nirmala Sitharaman introduced main adjustments within the new earnings tax regime throughout her Union Price range 2024 speech. These adjustments will give many salaried taxpayers a good thing about Rs 17,500 – supplied that they’re choosing the brand new earnings tax regime!
“Coming to Private Earnings Tax Charges, I’ve two bulletins to make for these choosing the brand new tax regime…on account of these adjustments, a salaried worker within the new tax regime stands to avoid wasting as much as Rs 17,500/- in earnings tax,” Sitharaman stated.
The usual deduction beneath the brand new earnings tax regime has been hiked from Rs 50,000 to Rs 75,000. Additionally the earnings tax slabs have been adjusted for FY 2024-25 in order that the 5% tax charge is now relevant for earnings as much as Rs 7 lakh. Another adjustments have additionally been launched.
Income Tax Slabs 2024-25 Budget 2024 Live Updates

New Earnings Tax Regime: What’s the Rs 17,500 tax profit?

So, salaried people at what earnings degree will profit probably the most from the earnings tax slab and commonplace deduction adjustments beneath the brand new earnings tax regime? How does this math work? We have a look:

State of affairs 1 State of affairs 2 State of affairs 3 State of affairs 4 State of affairs 5
New Tax Regime Proposed New Regime New Tax Regime Proposed New Regime New Tax Regime Proposed New Regime New Tax Regime Proposed New Tax Regime New Tax Regime Proposed New Tax Regime
Gross Wage 5,50,000 5,50,000 10,00,000 10,00,000 20,00,000 20,00,000 65,00,000 65,00,000 6,00,00,000 6,00,00,000
Commonplace deduction -50,000 -75,000 -50,000 -75,000 -50,000 -75,000 -50,000 -75,000 -50,000 -75,000
Gross Complete Earnings 5,00,000 4,75,000 9,50,000 9,25,000 19,50,000 19,25,000 64,50,000 64,25,000 5,99,50,000 5,99,25,000
Complete Taxable Earnings 5,00,000 4,75,000 9,50,000 9,25,000 19,50,000 19,25,000 64,50,000 64,25,000 5,99,50,000 5,99,25,000
Tax 10,000 8,750 52,500 42,500 2,85,000 2,67,500 16,35,000 16,17,500 1,76,85,000 1,76,67,500
Rebate -10,000 -8,750 – – – – –
Surcharge – – – – – – 1,63,500 1,61,750 44,21,250 44,16,875
Cess – – 2,100 1,700 11,400 10,700 71,940 71,170 8,84,250 8,83,375
Complete Tax – – 54,600 44,200 2,96,400 2,78,200 18,70,440 18,50,420 2,29,90,500 2,29,67,750
Profit beneath proposed new tax regime (with out surcharge and cess) – – – 10,000
17,500 – 17,500 – 17,500
Profit beneath proposed new tax regime (with surcharge and cess) – – – 10,400
18,200 – 20,020 – 22,750

As is obvious from the desk above, at numerous earnings ranges, the advantages will differ. The bottom earnings tax good thing about Rs 17,500 introduced by FM Sitharaman doesn’t embody the cess. It additionally does not embody surcharge at increased earnings ranges. As per the evaluation by EY, you’ll now must pay zero tax of earnings as much as Rs 7.75 lakh. For earnings as much as Rs 10 lakh, you’ll yearly save Rs 10,000 (with out cess). If one have been to incorporate cess then the profit will go up.
What are the latest income tax slabs FY 2024-25?
Surabhi Marwah, Tax Associate at EY India explains, “The adjustments within the new tax regime will profit taxpayers. As an illustration, beneath State of affairs 3, the place the gross wage is Rs 20,00,000, the entire tax payable beneath the present new tax regime quantities to Rs 2,96,400, whereas beneath the proposed new tax regime, the tax payable is lowered to Rs 2,78,200.”
“This interprets to a direct saving of Rs 17,500 (excluding cess), thereby, highlighting the federal government’s dedication to offering a extra simplified and useful tax construction for taxpayers,” she tells TOI.

What are the brand new earnings tax slabs beneath the brand new tax regime?

As per the adjustments introduced by FM Sitharaman, following are the brand new earnings tax slabs for the brand new or simplified tax regime:

  1. No tax for earnings as much as Rs 3 lakh
  2. 5% tax charge for earnings between Rs 3 lakh to Rs 7 lakh
  3. 10% tax charge for earnings between Rs 7 lakh and Rs 10 lakh
  4. 15% tax charge for earnings between Rs 10 lakh and Rs 12 lakh
  5. 20% tax charge for earnings between Rs 12 lakh and Rs 15 lakh
  6. 30% tax charge for earnings above Rs 15 lakh







Source link

Related Posts