New Delhi, India

India's Finance Minister Nirmala Sitharaman while presenting the Union Budget 2024 on Tuesday (July 23) in the Parliament made some major announcements regarding income tax rates.

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All the changes announced by FM Sitharaman were in the new tax regime and not in the old tax regime. 

Here are the changes announced in the tax slab

The finance minister said that in the new tax regime, the standard deduction has been increased from Rs 50,000 to Rs 75,000. 

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Also Read: Union Budget 2024: Here's what Nitish's Bihar and Naidu's Andhra get for being key allies

Meanwhile, for those filing tax in the new tax regime, the tax slab was revised as follows:

No tax up to Rs 3 lakh

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Rs 3-7 lakh at 5%

Rs 7-10 lakh at 10%

Rs 10-12 lakh at 15%

Rs 12-15 lakh at 20%

Above Rs 15 lakh 30%

The change introduced in the tax slab is the increase in the tax-exempt salary from Rs 2,50,000 to Rs 3,00,000. With these changes, salaried employee can save up to Rs17,500 in income tax in New Tax Regime. 

tax

FM abolishes Angel tax, reduces TDS rate 

Meanwhile, the finance minister abolished the Angel tax for all classes of investors and decreased the corporate tax rate on foreign companies from 40 to 35 per cent. 

"Monetary limit for filing Tax appeals increased to Rs 60 lacs for ITAT, Rs 2 crores for High Courts and Rs 5 crores for Supreme Court...I propose to abolish the Angel tax abolished for all classes of investors. Corporate tax rate to be reduced on foreign companies from 40 to 35 per cent," Sitharaman said. 

FM Sitharamanm speaking on TCS & TDS, said, "TDS rate on e-commerce operators reduced from 1% to 0.1%"

"A comprehensive review of the customs duty structure over the next 6 months. TDS rate on e-commerce to be reduced to 0.1%. I propose that two tax exemption regimes for charities merge into one. I propose to decriminalize TDS delay up to the filing of tax date," the finance minister added.

Watch: Budget 2024: Nirmala Sitharaman presents the first budget of Modi's 3.0 government

"I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in 6 months," said Sitharaman, in her Budget speech.

"I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in 6 months," the finance minister further said.

(With inputs from agencies)