New Tax Regime Slabs Changed, Standard Deduction Up From ₹ 50,000 To 75,000

Standard deduction in the new tax regime will be increased from ₹ 50,000 to ₹ 75,000, Finance Minister Nirmala Sitharaman said Tuesday as she announced the 2024 Union Budget. 

Ms Sitharaman also announced revisions to tax slabs in the new regime. As a result, the Finance Minister told Parliament, salaried employees can save as much as ₹ 17,500 in the new regime.

It will also, she said, provide salaried individuals with higher tax savings and more disposable income.

Existing new tax regime slabs (effective for FY 2023-24) were as follows:

1. Income up to ₹ 3 lakh – Nil 
2. Rs 3 lakh to ₹ 6 lakh – 5 per cent
3. Rs 6 lakh to ₹ 9 lakh – 10 per cent
4. Rs 9 lakh to ₹ 12 lakh – 15 per cent
5. Rs 12 lakh to ₹ 15 lakh – 20 per cent
6. Above ₹ 15 lakh – 30 per cent

The increase in standard deduction was one of the most anticipated ahead of the budget speech.