Budget 2024: New income tax slabs, capital gains tax, key tax changes that impact salaried, other taxpayers

economictimes.indiatimes.com:

Budget 2024 presented today by the finance minister Nirmala Sitharaman, will impact the personal finance of individuals in multiple ways. Here's a round-up.

#Budget' 2024 with ET

Budget Highlights: Your 2-minute guide

FM 's plan for Viksit Bharat: A look at key numbers

What's in Sitharaman's Budget for you?

Change in tax slabs and hike in standard deduction under new tax regime
One of the major updates is the rationalization of the tax rates under the new tax regime, which is expected to bring in a tax savings of up to Rs 17,500 for the taxpayer. Further, the Budget has increased the standard deduction for the salaried and pension receiving taxpayers, to Rs 75,000 from the earlier limit of Rs 50,000. For taxpayers who receive family pension, the deduction has been increased from Rs 15,000 to Rs 25,000. The new tax slabs will be applicable from April 1, 2024 i.e for current financial year.

The new tax regime in India, introduced in the Union Budget 2020, is a taxation system with lower tax rates compared to the old regime but with a trade-off of forgoing most of the deductions and exemptions. As the default tax regime of the last fiscal, the Budget 2024 revealed that more than 2/3rd of taxpayers opted for the new tax regime. To promote the new tax regime further as well as to encourage retirement savings, the Budget 2024 has enhanced the deduction for contribution by the employer to National Pension Scheme (NPS) of the employee, from 10% of salary to 14% of salary. This benefit was earlier allowed for government