What are changes to new income tax regime? Here’s How Much Money You Can Save

New Delhi: Finance minister Nirmala Sitharaman in her 7th Budget speech expanded the scope of deductions and benefits under the new tax regime while keeping the old tax regime unchanged. The finance minister in the first Budget of Modi government 3.0, increased the scope of standard deduction to Rs 50,000 from Rs 75,000 earlier.

Until now, salaried taxpayers earning up to Rs 7.5 lakh were not required to pay any tax under the new tax regime. While the finance minister did not clarify whether this rule is still applicable, the exemption limit may now rise to Rs 7.75 lakh going forward. Overall taxpayers can save up to Rs 17,500 under the new tax regime, said the finance minister. Pensioners will also receive some relief with the exemption cap raised to Rs 25,000 from Rs 15,000 earlier.

New tax regime tax slab changes

The finance minister has sequestered the tax slabs in a bid to widen the tax base under the new tax regime.
While the starting tax slab remains the same as before at Rs 0-3 lakh, taxed at 0 per cent.
The next slab of Rs 3,00,001-6,00,000 has been revised to Rs 3-7 lakh taxed at Rs 5 per cent.
The Rs 6,00,0001-9,00,000 slab has been sequestered to Rs 7-10 lakh, taxed at 10 per cent.
The 9,00,001-12,00,000 slab has been changed to Rs 10-12 lakh taxed at 15 per cent
The Rs 12,00,001-15,00,00 slab has been revised to Rs 12-15 lakh taxed at 20 per cent
The upper tax slab of 30 per cent tax on income above Rs 15 lakh

Tax Relief and Revised Tax Slabs in New Tax Regime 👇

🔸 Income tax saving of up to ₹ 17,500/- for salaried employee in new tax regime

🔸 #IncomeTax Relief for around Four Crore Salaried Individuals and Pensioners

🔸 Standard deduction for salaried employees to be increased… pic.twitter.com/2m7pPRmzgP

— PIB India (@PIB_India) July 23, 2024

Capital Gains tax changes

The finance minister also announced a slew of changes to the capital gains tax regime in a bid to simplify the same:
Short-term gains will now be taxed at 20 per cent on certain assets, while long-term gains will be taxed at 12.5 per cent
Financial assets which remained listed for over 1 year are likely to be classified under long-term gains

 Income Tax Saving under New Tax Regime: Finance minister Nirmala Sitharaman revised the tax slabs under the new tax regime to provide more savings to taxpayers compared to the old tax regime.  Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today