Budget 2024-25: How much tax will you pay on your salary?

The government has introduced a hefty Rs1.761 trillion in new revenue measures for the next fiscal year, likely leading to further inflation. Significant changes to the tax structure for salaried individuals are among these measures, aiming to raise an additional Rs75 billion.

Previously, the salary exemption limit has been static at Rs50,000 per month for three years. However, the new proposals in the Finance Bill 2024 include:

1. For salaries between Rs50,000 and Rs100,000 per month:

The tax rate will increase from 2.5% to 5% on the income above Rs50,000.

2. For salaries between Rs100,000 and Rs200,000 per month:

The tax rate will rise from 12.2% to 15% on the income above Rs100,000. The fixed annual tax amount will increase from Rs15,000 to Rs30,000.

3. For salaries between Rs200,000 and Rs266,000 per month:

The tax rate will be adjusted from 22.5% to 25%. The fixed annual tax amount will be increased from Rs165,000 to Rs180,000.

4. For salaries between Rs266,000 and Rs342,000 per month:

The tax rate will be raised from 27.5% to 30%. The fixed annual tax amount will increase from Rs300,000 to Rs430,000.

5. For salaries above Rs342,000 per month:

The two upper slabs have been merged, with a new tax rate of 35% applied to these salaries. Previously, this rate was only for salaries over Rs1 million per month.

Here’s a detailed breakdown: