5 New Income Tax Rules that will impact you in 2024

Taxation and Statutary Compaliances News
  1. Revised Tax Slab: To make the new tax regime more attractive, adjustments were made to the income tax slabs within this framework.
  • No tax on income up to ₹3 Lakhs
  • 5% for income between ₹3 Lakhs to ₹6 Lakhs
  • 10% for income from ₹6 Lakhs to ₹9 Lakhs
  • 15% for income from ₹9 Lakhs to ₹12 Lakhs
  • 20% for income from ₹12 Lakhs to ₹15 Lakhs
  • 30% for income exceeding ₹15 Lakhs
  1. Tax exemption limit in the new tax regime: The tax exemption limit has been increased in the new tax regime. People adopting the new tax system will get tax exemption on income of up to ₹3 Lakhs, which until now was available only up to ₹2.5 Lakhs. That means tax exemption on additional ₹50,000 will be available from this year.
  2. New tax regime becomes default: The new tax regime has been made the default regime. That is, while filing an ITR, it will by default show the new tax regime. If you want to go with the old tax system, you will have to select it manually.
  3. Increase in Tax Rebate: Under Section 87A of the Income Tax Act, the Rebate limit has been increased from ₹12,500 to ₹25,000 in the new tax regime.
  4. Standard deduction of ₹50,000: Till last year, employees and pensioners paying income tax used to get tax deductions of ₹50,000 only under the old tax system. From this year, employees and pensioners who choose the new tax regime will also get a standard deduction of ₹50,000.

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