Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2024 on Thursday, 1 February, announced that there would be "no changes" in the income tax rates.
"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."Nirmala Sitharaman, Finance Minister
Sitharaman also remarked that keeping in mind that certain tax benefits to start-ups and investments made by sovereign wealth or pension funds, as also tax exemption on certain income of some IFSC units, are expiring on 31 March 2024, she has proposed an extension of the date to 31 March 2025.
Moreover, talking about direct taxes, she added:
"I propose to withdraw such outstanding direct tax demands up to twenty-five thousand rupees (₹ 25,000) pertaining to the period up to financial year 2009-10 and up to ten-thousand rupees (₹ 10,000) for financial years 2010-11 to 2014-15. This is expected to benefit about a crore tax-payers."
What Are The Current Income Tax Rates?
Some of the major changes that were introduced during Budget 2023 included the increase of threshold limit for total income eligible for rebate under Section 87A from Rs 5,00,000 to Rs 7,00,000 for assesses opting for the new tax regime.
The new tax regime was widened with six tax slab rates ranging from 0% to 30%.
Income between ₹3-6 lakh would be taxed at 5% (tax rebate under Section 87A is available)
Income between ₹6-9 lakh would be taxed at 10% (tax rebate under Section 87A on income up to ₹7 lakh was made available)
Income between ₹9-12 lakh at 15%
Income between ₹12-15 lakh at 20%
Income of ₹15 lakh and above will be taxed at 30%
Surcharge rate reduced on income over Rs 5 crores from 37% to 25%
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