Budget 2024: How much income tax will you pay now if you earn ₹15 lakh

The rate of taxation remains unchanged, however the size of each of the slabs, excluding the initial zero rate for income upto ₹3 lakh remains unchanged. The slab of ₹3 lakh to ₹6 lakh has been expanded to ₹3 lakh to ₹7 lakh . The rate of taxation, that is 5%, remains unchanged.

Similarly, the other new slabs are Rs7 lakh to Rs10 lakh at 10%, Rs10 lakh to Rs12 lakh at 15%, ₹12 lakh to ₹15 lakh at 20% and income above ₹15 lakh at 30%.

Here’s how much you will pay if you earn more than 15 lakhs. An individual earning ₹15 lakhs will now pay ₹1, 50, 000 in taxes and will be left with ₹13,50,000, according to Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited.

Under the new tax regime, the finance minister has increased the standard deduction to ₹75,000 from ₹50,000.

According to the finance minister the revised standard deduction limit will provide relief to about four crore salaried individuals and pensioners.

Apart from change in tax slabs and standard deduction, for pensioners the deduction on family pension has been proposed to be raised to ₹25,000 from ₹15,000 . This change is aimed to relieve those who receive a family pension, ensuring better post-retirement financial stability.

Sitharaman also proposed to review and simplify the Income Tax Act, 1961

During her Budget speech, FM Sitharaman said,

“I announce a comprehensive review of the Income Tax Act 1961. This will reduce disputes and litigation. It is proposed to be completed in 6 months.”

The budget session began on July 22 with economic survey presentation. The budget session is scheduled to conclude by August 12.