Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime

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new income tax regime offers several benefits, including a simplified tax structure with lower rates, reduced tax liability, and increased disposable income for taxpayers. By eliminating various deductions and exemptions, it streamlines tax compliance, saving time and effort for taxpayers.

Taxpayers can benefit from lower tax rates under the new regime, resulting in reduced tax liability and higher disposable income. “The government has been pushing the new tax regime by making it more attractive for taxpayers.

The new tax regime provides the taxpayers with a substantially lower tax rate," said Aarti Raote, Partner, Deloitte India. The new regime simplifies the tax structure by offering lower tax rates -No tax would be levied for income up to ₹3 lakh -Income between ₹3-6 lakh would be taxed at 5 per cent (tax rebate under Section 87A is available) -Income between ₹6-9 lakh would be taxed at 10 per cent (tax rebate under Section 87A on income up to ₹7 lakh is available) -Income between ₹9-12 lakh at 15 per cent -Income between ₹12-15 lakh at 20 per cent -Income of ₹15 lakh and above will be taxed at 30 per cent.

The new regime eliminates the need to track and claim deductions, saving time and effort for taxpayers. "Further, the taxpayers also do not have the hassle of collecting and providing details and evidence for expenditure and investments," Aarti Raote “The basic exemption limit has been elevated from ₹2.5 lakh to ₹3 lakh.

This increased exemption limit makes the novel tax regime more appealing. Note that the highest tax rate, i.e., 30%, will be imposed on income exceeding Rs15 lakh," said Clear founder and CEO Archit Gupta The implementation of the new tax regime leads to a reduction in the surcharge rate from 37%