In the Union Budget 2024-25, Finance Minister Nirmala Sitharaman has announced a comprehensive review of the Income Tax Act. The FM has proposed easing taxation norms for individuals and entities. Presenting the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman also said the government will come out with SoP (standard operating procedure) for TDS defaults and simplify and rationalise compounding of such offences.
“To simply taxation, we have taken a number of measures in the last few years,” Sitharaman further said. For the last fiscal, more than two-thirds have availed the new income tax regime, she added. FM Sitharaman also proposed raising the long-term capital gains to 12.5% from 10% in the Budget 2024-25. More than two-thirds of individuals availed of the new income tax regime, Sitharaman said in the Lok Sabha.
The FM further announced that DPI apps will be developed for credit, e-commerce, education, health, law, MSME service delivery, and urban governance. Sitharaman also announced increase in standard deduction to ₹75,000 under the new tax regime.
The income tax slabs for the financial year are structured as follows:
- For income up to Rs 3 lakh, there is no tax
- For income between Rs 3 lakh and Rs 5 lakh, the tax rate is 5%
- For income between Rs 7 lakh and Rs 10 lakh, the tax rate is 10%
- For income between Rs 10 lakh and Rs 12 lakh, the tax rate is 15%
- For income between Rs 12 lakh and Rs 15 lakh, the tax rate is 20%
- For income above Rs 15 lakh, the tax rate is 30%
