Budget 2024 Income Tax Slabs FY25 Highlights: No changes in tax rates; know income tax slabs & tax rates for 2024-25

Budget 2024 Income Tax Highlights: Income tax slabs 2024-2025 changes - In a disappointment for the common man and the middle class salaried taxpayers no changes in income tax slabs or income tax rates for the financial year 2024-25 were announced by Finance Minister Nirmala Sitharaman in her Interim Budget 2024 speech. There were widespread expectations that FM Nirmala Sitharaman will announce some income tax relief for the middle class. “As for tax proposals, in keeping with the convention, 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,” FM Sitharaman said.Income Tax slabs were last revised in last year’s Budget under the new income tax regime. The new income tax regime is now the default income tax regime and if you still want to opt for the old tax regime, then as a taxpayer you will have to make that conscious choice at the time of filing your income tax return. The new income tax regime gives the option of lower tax rates up to an income threshold of Rs 15 lakh, while not allowing for some major tax exemptions and deductions that are available in the new tax regime.Since the Modi government’s focus seems to be on increasing the adoption of the new income tax regime, tax experts are of the view that some popular deductions made by individuals that incentivise savings may be included eventually in the new tax regime.Standard deduction, which is at Rs 50,000, was included in the new income tax regime by FM Nirmala Sitharaman in last year’s Budget. The old income tax regime is popular for the various exemptions and deductions that it offers to the salaried taxpayers. These include exemptions for investments in Provident Fund, Public Provident Fund (PPF), mutual funds etc.The National Pension System (NPS) is a much talked about and promoted retirement scheme by the government and tax experts say that the Rs 50,000 exemption for NPS investment may find its way in the new income tax regime eventually. Track TOI for the latest updates on the Income Tax Slabs 2024-25 to be announced in Budget 2024: