The 1st of April, every year marks the beginning of a new financial year. However, this year no major changes have been announced by Finance Minister Nirmala Sitharaman in the Income tax slab rate in interim budget 2024 in February other than the income tax slab.
The changes in the new tax regime were announced in last year’s Budget (2023) which is applicable in the current financial year (2024-2025). However, the new tax regime is now the default option for taxpayers but the option of choosing the old regime is still intact. This has made the new tax regime attractive for individual taxpayers.
New Tax Regime Table:
| Income Tax Slabs | Income Tax Rate% |
| From 0 to 3,00,000: | 0 |
| From 3,00,001 to 6,00,000: | 5%(Tax Rebate under 87A) |
| From 6,00,001 to 9,00,000: | 10% (Tax Rebate under 87A till 7 Lakh) |
| From 9,00,001 to 12,00,000: | 15% |
| From 12,00,001 to 15,00,000: | 20% |
| From 15,00,001 to above | 30% |
New Rules Came Into Effect From 1st April:
- The basic exemption limit increased from 2.5 Lakh to 3 Lakh in the new tax regime.
- The standard deduction of Rs 50,000 which was earlier applicable in the old tax regime, has now been introduced in the new tax regime for salaried and pensioners. This helps in reducing taxable income under the new system.
- The Rebate under Section 87A has increased the taxable income by Rs 7 lakh which provides a rebate of Rs 25,000 from 5 lakh which provides a tax rebate of 12,500. This shows the individual opting for a new tax regime and having a taxable income of up to Rs 7 lakh will not pay any taxes.
- Under the new tax regime, the highest surcharge rate on income 5 cr or above has been reduced from 37% to 25%.
- This new regime has reduced the number of income tax slabs from six to five.
- Family pensioners can claim a standard deduction of Rs 15,000 in the new tax regime.
- The maturity income from life Insurance Policies (issued on or after 1st April 2023) and total premium exceeding Rs 5 lakh will be subject to taxation.
- The leave encashment tax for non-government employees has now increased to 25 lakh from 3 lakh.
1st April Brings New Changes:
- The minimum contribution to NPS (National Pension System) has increased from Rs 500 to Rs 2000 and this change will apply to the age group of 18-25 years.
- KYC is mandatory to use Fastag.
- SBI has increased the annual fees on Debit Cards
- The annual maintenance fee of the Pride Premium Business Debit Card will be Rs 425 including GST.
- LIC has introduced the Protection of Policyholder Interest Regulation. The changes include new guaranteed surrender value, premium payment options, and more.