Income Tax Structure Unchanged In Budget 2024: Know Current Tax Slabs & Rates Under New Regime Vs Old Regime

Income Tax Rates and Slabs: Even as the Interim Budget 2024-25 has been presented by Finance Minister Nirmala Sitharaman on Thursday, February 1, the government has kept the tax slabs and rates unchanged.

“I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties,” Finance Minister Nirmala Sitharaman said in her Budget Speech on Thursday.

Currently, those individuals having an annual income of up to Rs 2.5 lakh are exempt from income tax, while the income up to Rs 5 lakh can be tax-free under the new tax regime using rebate under Section 87A.

Currently, there are two income tax regimes. Individuals can use any one of these. Under the old regime, the income tax is exempt up to Rs 2.5 lakh, and over and above this, various deductions can be claimed under Section 80C, 80D, 80CCD, etc, to reduce taxable income.

Under the new income tax regime, which was introduced in the Budget 2021-22, no income tax is levied on an annual income of up to Rs 5 lakh, without any deductions. However, if the annual income exceeds Rs 5 lakh, let’s say if it becomes Rs 5.5 lakh, income tax on the whole Rs 3 lakh is levied (income up to Rs 2.5 lakh is exempt under both regimes). No deductions can be claimed under the new regime.

Current Income Tax Slabs and Rates Under Old Regime Vs New Regime:

Annual Income (in Rs) — Old Regime — New Regime

• up to Rs 2,50,000 — Nil — Nil
• 2,50,000-5,00,000 — 5% — 5%
• 5,00,000-7,50,000 — 20% — 10%
• 7,50,000-10,00,000 — 20% — 15%
• 10,00,000-12,50,000 — 30% — 20%
• 12,50,000-15,00,000 — 30% — 25%
• Above 15,00,000 — 30% — 30%.