The income tax slabs in the new tax regime have been changed slightly. As per the announcement, instead of 6, now there will be 5 income tax slabs.
The New Slabs and new Income tax rates under the new income tax regime will be as follows:
- Upto Rs 3 lakh – 0% tax rate
- Between Rs 3 to 7 lakh – 5%
- Between Rs 7 to 10 lakh – 10%
- Between Rs 10 lakh to Rs 12 lakh – 15%
- Between Rs 12 lakh to Rs 15 lakh – 20%
- Above Rs 15 lakh above – 30%
Additionally, the standard deduction limit has been hiked to Rs 75,000 from Rs 50,000 in the new tax regime only.
The new tax income tax slabs in the new tax regime will be effective from 1st April 2024
Here is the comparison between the old vs new regime tax rates.
Also, the new income tax regime will continue to be the default tax regime. However, individuals will still have an option to continue with the old income tax regime if they want.