The key features of the Optional New Provisions (Section 115BAC of the Act) are summarised as under:
Compare your tax under the Proposed New regime and also under the Current Provisions of Old regime and New Regime
The New tax regime slabs under Finance Act 2023 and Finance Act 2024 are as below:
Applicable up to 31 March 2024 | |
Taxable income (INR) | Rate (%) |
Upto 300,000 | Nil |
300,001 to 600,000 | 5 |
600,001 to 900,000 | 10 |
900,001 to 1,200,000 | 15 |
1,200,001 to 1,500,000 | 20 |
Above 1,500,000 | 30 |
Effective from 1 April 2024 | |
Taxable income (INR) | Rate (%) |
Upto 300,000 | Nil |
300,001 to 700,000 | 5 |
700,001 to 1,000,000 | 10 |
1,000,001 to 1,200,000 | 15 |
12,00,001 to 1,500,000 | 20 |
Above 1,500,000 | 30 |
The New tax regime comes with a few pre-requisite conditions such as:
- Leave travel concession [section 10(5) of the Act]
- House rent allowance [section 10(13A) of the Act]
- Interest on savings account deduction under Section 80TTA/80TTB
- Professional tax and entertainment allowance on salaries
- Allowances to MPs/MLAs
- Children education allowance
- Other special allowances [Section 10(14)]
- Donation to political party/trust, etc
- Allowance for income of minor [section 10(32) of the Act];
- Helper allowance
- Exemption such as free food and beverage through vouchers provided to the employee.
- Interest on housing loan on the self-occupied property or vacant property (Section 24)
- Chapter VI-A deduction under Section 80C, 80D, 80E and so on,
- Employee’s (own) contribution to NPS
- Transport allowances in case of a specially abled person.
- Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment.
- Any compensation received to meet the cost of travel on tour or transfer.
- Daily allowance received to meet the ordinary regular charges or expenditure you incur on account of absence from his regular place of duty.
- Perquisites for official purposes
- Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA)
- Interest on home loan on let-out property
- Gifts up to INR50 thousand
- Deduction for employer’s contribution to NPS account [Section 80CCD(2)]. Further, Employer’s contribution to NPS towards the deduction available to employees of all categories enhanced to 14 per cent from 10 per cent of specified salary under Finance Act 2024
- Deduction for additional employee cost (Section 80JJA)
- Standard deduction of Rs INR50 thousand now enhanced to INR75 thousand under the Finance Act 2024
- Deduction under Section 57(iia) of family pension income now enhanced from INR15 thousand to INR25 thousand under Finance Act 2024
