Interim Budget 2024: No change in income tax slab announced. Here are the current new and old tax slabs

As of February 1, Finance Minister Nirmala Sitharaman presented the interim budget for the financial year 2024-25. 

Despite high expectations from the salaried class for changes in income tax slabs, no alterations were announced during this budget session. The current tax slabs remain as follows:

*Old Tax Regime:*

1. Income up to ₹2.5 lakh - Nil tax
2. Income between ₹2.5 to ₹5 lakh - 5% tax
3. Income from ₹5 lakh to ₹10 lakh - 20% tax
4. Income above ₹10 lakh - 30% tax

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*New Tax Regime:*

1. Income up to ₹3 lakh - Nil tax
2. Income between ₹3 to ₹6 lakh - 5% tax (with a tax rebate under Section 87A available)
3. Income between ₹6 to ₹9 lakh - 10% tax (with a tax rebate under Section 87A up to ₹7 lakh available)
4. Income between ₹9 to ₹12 lakh - 15% tax
5. Income between ₹12 to ₹15 lakh - 20% tax
6. Income of ₹15 lakh and above - 30% tax

The new tax regime was introduced in the Union Budget of 2020 and was made the default regime in the budget of 2023. However, taxpayers who choose the new tax regime are not eligible to claim several exemptions and deductions such as HRA, LTA, 80C, and 80D.

The full budget is expected to be presented in July 2024 after the formation of the new government post-Lok Sabha Elections. Taxpayers and experts alike had anticipated potential reforms or adjustments to the tax slabs, but the interim budget did not propose any changes to the existing structures.