Finance Minister Nirmala Sitharaman today unveiled revised personal income tax rates for FY 2024 during the budget announcement. Under the new tax regime, individuals will experience a revised taxation framework aimed at providing relief and encouraging compliance.
As per the latest provisions, individuals earning up to Rs 3 lakh annually will not have to pay any income tax, marking the continuation of exemptions for the lowest income group. For income between Rs 3 lakh and Rs 7 lakh, a moderate tax rate of 5% has been introduced. Those earning between Rs 7 lakh and Rs 10 lakh will now face a 10% tax rate.
Income between Rs 10 lakh and Rs 12 lakh will be taxed at 15%, while income between Rs 12 lakh and Rs 15 lakh will be taxed at 20%. Individuals earning above Rs 15 lakh will be taxed at 30%.
Further, to encourage investments and reduce regulatory burden, the Finance Minister announced the abolition of angel tax across all classes of investors. This measure is expected to boost entrepreneurial activity and attract more venture capital funds into the economy. On the corporate tax front, foreign companies operating in India will benefit from a reduction in the corporate tax rate from 40% to 35%. This adjustment is aimed at enhancing India’s competitiveness in attracting foreign direct investment and promoting a favourable business environment.