Budget 2024 - How Salaried Employee Will Save ₹17,500

The Budget 2024 has introduced new tax slabs that bring significant savings for salaried employees. Here’s a detailed comparison of the new and old tax slabs, highlighting how an employee can save ₹17,500.

Tax Slabs Comparison

New Slabs	Rates	Tax	Old Slabs	Rates	Tax	Difference
0 – 3 Lakhs	0 %	–	0 – 3 Lakhs	0 %	–	–
3- 7 Lakhs	5 %	20,000	3 – 6 Lakhs	5 %	15,000	-5,000
7 – 10 Lakhs	10 %	30,000	6 – 9 Lakhs	10 %	30,000	–
10 – 12 Lakhs	15 %	30,000	9 – 12 Lakhs	15 %	45,000	15,000
12 – 15 Lakhs	20 %	60,000	12 – 15 Lakhs	20 %	60,000	–
15 Lakhs	30 %	1,50,000	15 Lakhs	30 %	1,50,000	–
Total		2,90,000	Total		3,00,000	10,000
Standard Deduction @30%	30% of 75,000= 22,500			30% of 50,000= 15,000		7,500
Grand Total						17,500

Total Tax Calculation

New Tax Total: ₹2,90,000
Old Tax Total: ₹3,00,000
Difference: ₹10,000

Standard Deduction

New Standard Deduction: ₹75,000
Old Standard Deduction: ₹50,000
Difference: ₹25,000 (30% of difference – 7,500)

Grand Total Savings

Total Savings: ₹10,000 (Tax Difference) + ₹7,500 (Standard Deduction Difference) = ₹17,500

Conclusion

The new tax slabs and increased standard deduction in Budget 2024 provide a clear financial benefit for salaried employees, resulting in a total saving of ₹17,500. This change aims to ease the tax burden and increase disposable income for the salaried class.

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