Union Budget 2024: Bihar and Andhra are overwhelmed by the budget presented in the Parliament on Tuesday. There's good news for those too who like having jewellery as the custom duty from gold and silver has been reduced. Three medicines used to treat cancer have become completely duty-free, providing relief to patients. However, the salaried group has to do without any tax exemption.
But an announcement on income tax and standard deduction made by Finance Minister Nirmala Sitharaman came as a cool breeze to the middle-class employees who range from seven to fifteen lakhs of annual income.
A maximum of Rs. 17,500 can be saved as per an announcement made by the FM on the standard deduction if one's annual income is Rs. 15,00,000, says CA Manish Malhotra. He explains it through the comparative study of the new tax slab and the updated new tax regime that has been declared on Tuesday.
New Slab (2023) In cash
Rs. 3 lakhs and below 0% Rs. 00
Rs. 3-6 lakhs 5% Rs. 15,000
Rs. 6-9 lakhs 10% Rs. 30,000
Rs. 9-12 lakhs 15% Rs. 45,000
Rs. 12-15 lakhs 20% Rs. 60,000
Total Rs. 1,50,000
Previous standard deduction - Rs. 50,000
New slab (updated)
Rs. 3 lakhs and below 0% Rs. 00
Rs. 3-7 lakhs 5% Rs. 20,000
Rs. 7-10 lakhs 10% Rs. 30,000
Rs. 10-12 lakhs 15% Rs. 30,000
Rs. 12-15 lakhs 20% Rs. 60,000
Total Rs. 1,40,000
New standard deduction - Rs. 75,000
The difference between the total of both the regimes - Rs. 10,000
The difference between the standard deductions for Rs. 15,00,000 income i.e. Rs. 22,000 - Rs. 1500 becomes Rs. 7,500.
Combining both, it becomes Rs. 17,500. This is the amount a salaried employee with an annual package of Rs. 15,00,000 would get if he opts for the new tax regime.
Also read: New Budget Reveals 10 Essential Taxpayer Benefits You Should Know