FM gives relief to salaried class on tax slabs and standard deduction

Finance Minister Nirmala Sitharaman has announced a significant set of income-tax reforms for the fiscal year 2024-25, aimed at simplifying tax laws, promoting compliance, and fostering economic growth.

The finance minister highlighted the strong adoption of the simplified corporate tax regime, which now accounts for 58 per cent of corporate tax revenue in 2022-23.

And two-thirds of the personal tax filers are choosing the new tax regime. The government is working on a comprehensive review of the Income Tax Act, which will be completed in the next six months.

The FM has given some relief to taxpayers by hiking tax slabs for personal income tax. The new tax slab will now have nil tax up to an income of Rs 3 lakh, like the previous year.

But now income between Rs 3-7 lakh will attract a tax rate of 5 per cent, earlier 5 per cent tax was applied on income of between Rs 3-6 lakhs.

Income of between Rs 7-10 lakh will now be taxed at 10 per cent earlier it was for income of between Rs 6-9 lakhs.

Income between Rs 10-12 lakh will now be taxed at 15 per cent, earlier it was for income between 9-12 lakhs.