Summary of the key changes in the New Tax Regime as per the Budget 2024-25:
1. NPS Employer Contribution
- Employers can now contribute between 0% to 14% of the employee's basic salary.
2. Standard Deduction
- The standard deduction has increased from ₹50,000 to ₹75,000.
3. Income Tax Slab Rates
Income tax slabs (In Rs) | Percentage |
0 to 3 lakhs | 0% |
300001 to 700000 | 5% |
700001 to 1000000 | 10% |
10,00,001 to 12,00,000 | 15% |
12,00,001 to 15,00,000 | 20% |
15,00,001 and above | 30% |
4. Marginal Relief under Section 87A
- The threshold for marginal relief has been reduced from ₹25,000 to ₹20,000.
5. Marginal Relief Amounts
- Above ₹7,00,000: ₹7,22,222
- Above ₹50,00,000: ₹51,77,611
- Above ₹1 Crore: ₹1,02,05,343
- Above ₹2 Crore: ₹2,09,10,400
These changes aim to provide more benefits to taxpayers while adjusting the structure of deductions and tax rates.
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