As we navigate through the financial year, it’s essential to stay updated with the latest changes in the tax regime introduced by the government. The Budget 2024 has brought significant updates to the tax slabs and standard deductions, impacting salaried individuals and taxpayers across the board. This article provides a detailed comparison of the tax regimes for FY 2023-24 and FY 2024-25, helping you understand the changes and how they affect your tax liabilities.
Tax Slabs Comparison
The tax slabs for both fiscal years have been structured to provide relief to middle-income earners, but with some key differences:
| Tax Slab for FY 2023-24 | Tax Rate | Tax Slab for FY 2024-25 | Tax Rate |
|---|---|---|---|
| Up to ₹3 lakh | Nil | Up to ₹3 lakh | Nil |
| ₹3 lakh – ₹6 lakh | 5% | ₹3 lakh – ₹7 lakh | 5% |
| ₹6 lakh – ₹9 lakh | 10% | ₹7 lakh – ₹10 lakh | 10% |
| ₹9 lakh – ₹12 lakh | 15% | ₹10 lakh – ₹12 lakh | 15% |
| ₹12 lakh – ₹15 lakh | 20% | ₹12 lakh – ₹15 lakh | 20% |
| More than ₹15 lakh | 30% | More than ₹15 lakh | 30% |
Key Changes and Updates
- Standard Deduction:
- FY 2023-24: ₹50,000 for salaried individuals.
- FY 2024-25: Increased to ₹75,000 for salaried individuals.
- Family Pension Deduction:
- FY 2023-24: Family pension deduction of ₹15,000.
- FY 2024-25: Family pension deduction increased to ₹25,000.
Tax Comparison Calculator
To help you easily compare your tax liabilities under the two fiscal years, we’ve created an interactive tax comparison calculator. Enter your annual income to see how much tax you would pay under each regime.
Tax Comparison Result:
Conclusion
Understanding the changes in the tax regime and how they affect your finances is crucial for effective tax planning. The updates in the Budget 2024 aim to provide more significant relief to middle-income earners while simplifying the tax filing process. Use the provided calculator to compare your tax liabilities and make informed decisions for your financial well-being.
