The Union Budget 2024-25, announced on July 23, 2024, introduced significant changes to India’s new income tax regime. The standard deduction has been increased from INR 50,000 (approx. US$597) to INR 75,000 (approx. US$896), allowing salaried workers opting for this regime to save more on their taxes. Additionally, the rebate under Section 87A has been enhanced, and the concessional surcharge rate for high earners has been reduced from 37% to 25%. The new regime features revised tax slabs with lower rates for incomes up to INR 1.2 million (approx. US$14,333). Despite these updates, the old tax regime remains unchanged and continues to offer deductions for various investments. Taxpayers should consult with experts to determine the most beneficial regime for their financial situation.
