In a significant update for the upcoming fiscal year, the Finance Bill 2024 has unveiled revised tax brackets and rates, impacting both salaried individuals and business entities across the country.
Revised Income Tax Slabs for Salaried Individuals
Here’s a detailed breakdown of the updated income tax slabs for salaried individuals:
• Up to Rs. 600,000: Enjoy a zero percent tax rate on taxable income within this bracket.
• Rs. 600,001 to Rs. 1,200,000: Pay 5% tax on the amount exceeding Rs. 600,000.
• Rs. 1,200,001 to Rs. 2,200,000: Expect Rs. 30,000 plus 15% on income over Rs. 1,200,000.
• Rs. 2,200,001 to Rs. 3,200,000: Face Rs. 180,000 plus 25% on income over Rs. 2,200,000.
• Rs. 3,200,001 to Rs. 4,100,000: Bear Rs. 430,000 plus 30% on income over Rs. 3,200,000.
• Above Rs. 4,100,000: Prepare for Rs. 700,000 plus 35% on income over Rs. 4,100,000.
New Tax Slabs for Business Individuals and AOPs
For business individuals and AOPs (Association of Persons) in Tax Year 2025, the updated tax slabs have been structured as follows:
• Up to Rs. 600,000: No tax, providing relief to small business owners and low-income earners.
• Rs. 600,001 to Rs. 1,200,000: Pay 15% tax on income exceeding Rs. 600,000, easing into tax obligations.
• Rs. 1,200,001 to Rs. 1,600,000: Face Rs. 90,000 plus 20% on income over Rs. 1,200,000, ensuring progressive taxation.
• Rs. 1,600,001 to Rs. 3,200,000: Encounter Rs. 170,000 plus 30% on income over Rs. 1,600,000, reflecting higher earnings.
• Rs. 3,200,001 to Rs. 5,600,000: Meet Rs. 650,000 plus 40% on income over Rs. 3,200,000, aligning with increased income levels.
• Above Rs. 5,600,000: Deal with Rs. 1,610,000 plus 45% on income over Rs. 5,600,000, ensuring equitable contributions from top earners.
These revisions aim to streamline the taxation process, offering clarity and fairness while supporting economic growth and fiscal responsibility. Stay informed to effectively plan your financial strategies for the upcoming fiscal year.