There is no decision yet on when the old tax regime will be scrapped, Finance Minister Nirmala Sitharaman said Tuesday afternoon, after presenting the 2024 Union Budget in Parliament.
“Can't take a call on whether the old tax regime will be done away with… can only say the intention is to make the tax regime simpler,” she said. “Can't say if there will be a sunset on the old regime.”
#BudgetWithNDTV | “Our intention is – simpler tax regime. Cannot say whether there will be a sunset on the Old Tax Regime. Decision after a review”: Finance Minister #NirmalaSitharaman on #Budget2024 pic.twitter.com/jlA6VkGiWt
— NDTV (@ndtv) July 23, 2024
Earlier today the Finance Minister announced tweaks to the new regime, including raising standard deduction from Rs 50,000 to Rs 75,000, and widening the slabs (without changing the tax rates).
#BudgetWithNDTV: New Tax Regime Slabs Changed, Standard Deduction Up From ₹50,000 To ₹75,000 https://t.co/vNNovXN942#BudgetSession #Budget2024 #NirmalaSitharaman #IncomeTax pic.twitter.com/qtNvNJp7zT
— NDTV (@ndtv) July 23, 2024
These revisions, she said, would allow salaried taxpayers to save as much as Rs 17,500 annually.
READ | New Tax Regime Slabs Changed, Standard Deduction At Rs 75,000
There were no changes announced for the old regime.
The new regime was introduced in 2020 and was made the default in last year's budget.
The old regime provides several deductions and exemptions for individuals, including house rent and leave travel allowances, as well as deductions under Sections 80C, 80D, 80CCD(1b) and 80CCD(2).
However, these exemptions and deductions are not available in the new tax regime.
Essentially, the new regime has lower tax rates but fewer deductions and exemptions.
The older one has higher tax rates but allows various deductions to reduce taxable income.
The older one provide several basic income exemption limits depending on the taxpayer's age.
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