How much will those earning from ₹ 7,75,000 to ₹ 18,75,000 benefit from the change in income tax slab, Know

New Delhi: Finance Minister Nirmala Sitharaman has provided relief to the middle class on the income tax front, as anticipated in the Union Budget 2024-25. This relief will be available to taxpayers under the new tax system announced in 2020.

The Finance Minister has not only increased the standard deduction from ₹50,000 to ₹75,000 under the new income tax regime, but has also revised the tax slabs. According to the new slabs, income from ₹0 to ₹3 lakh will continue to be exempt from income tax.

Following changes in the next slab, a 5% tax will now be levied on income from ₹3 lakh to ₹7 lakh, whereas previously only income up to ₹6 lakh was taxed at 5%. A 10% tax will now apply to income from ₹7 lakh to ₹10 lakh, compared to the previous slab which taxed income from ₹6 lakh to ₹9 lakh at this rate.

Income from ₹10 lakh to ₹12 lakh will be taxed at 15%, whereas previously this rate applied to income from ₹9 lakh to ₹12 lakh. In the remaining slabs, income from ₹12 lakh to ₹15 lakh will continue to be taxed at 20%, and income above ₹15 lakh will still be taxed at 30%.