Budget 2024: How to calculate income tax based on the new tax regime?

Union Finance and Corporate Affairs minister Nirmala Sitharaman announced the Budget 2024 on Tuesday where not only she revised the income tax rates in the new tax regime (NTR) but also raised the standard deduction at the same time to ₹75,000 from current ₹50,000.

These are the revised tax rates in the New Tax Regime

Overall, salaried taxpayers stand to gain up to ₹17,500 on income above ₹15 lakh. This saving is accumulation of savings across income slabs and additional standard deduction, thus adding to total savings. 

“Further, I propose to increase monetary limits for filing appeals related to direct taxes, excise and service tax in the Tax Tribunals, High Courts and Supreme Court to ₹ 60 lakh, ₹ 2 crore and ₹ 5 crore respectively,” she said.

Simplified capital gains

FM also simplified the capital gains taxation by introducing a flat rate of 20 percent on short term capital gain while on all other financial assets and non-financial assets continuing to attract the applicable tax rate.

“Long term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to ₹ 1.25 lakh per year,” she said.

If you want to calculate your income tax, check the calculator here.