Income Tax Slab Rates and Tax Benefits in Budget for Fy 2024-25

Comparative Analysis of Income Tax Slab Rates: Interim Budget vs. Current Budget for FY 2024-25

Overview

This article presents a detailed comparison of the income tax slab rates under the interim budget and the current budget for the financial year 2024-25. The analysis focuses on three different gross income levels: ₹10 Lakh, ₹12 Lakh, and ₹15 Lakh. The comparison highlights the tax benefits under the current budget compared to the interim budget.

Income Tax Calculation for Gross Income of ₹10 Lakh

Interim Budget Slab Rate:

Income Range	Tax Rate	Tax Amount
0-3 Lakh	0%	₹0
3-6 Lakh	5%	₹15,000
6-9 Lakh	10%	₹30,000
9-10 Lakh	15%	₹7,500
Total Tax		₹52,500

Current Budget Slab Rate:

Income Range	Tax Rate	Tax Amount
0-3 Lakh	0%	₹0
3-7 Lakh	5%	₹20,000
7-9.25 Lakh	10%	₹22,500
Total Tax		₹42,500

Tax Benefit:

Interim Budget Tax - Current Budget Tax = ₹52,500 - ₹42,500 = ₹10,000

Income Tax Calculation for Gross Income of ₹12 Lakh

Interim Budget Slab Rate:

Income Range	Tax Rate	Tax Amount
0-3 Lakh	0%	₹0
3-6 Lakh	5%	₹15,000
6-9 Lakh	10%	₹30,000
9-11.50 Lakh	15%	₹37,500
Total Tax		₹82,500

Current Budget Slab Rate:

Income Range	Tax Rate	Tax Amount
0-3 Lakh	0%	₹0
3-7 Lakh	5%	₹20,000
7-10 Lakh	10%	₹30,000
10-12 Lakh	15%	₹18,750
Total Tax		₹68,750

Tax Benefit:

Interim Budget Tax - Current Budget Tax = ₹82,500 - ₹68,750 = ₹13,750

Income Tax Calculation for Gross Income of ₹15 Lakh

Interim Budget Slab Rate:

Income Range	Tax Rate	Tax Amount
0-3 Lakh	0%	₹0
3-6 Lakh	5%	₹15,000
6-9 Lakh	10%	₹30,000
9-12 Lakh	15%	₹45,000
12-14.50 Lakh	20%	₹40,000
Total Tax		₹1,30,000

Current Budget Slab Rate:

Income Range	Tax Rate	Tax Amount
0-3 Lakh	0%	₹0
3-7 Lakh	5%	₹20,000
7-10 Lakh	10%	₹30,000
10-12 Lakh	15%	₹30,000
12-14.25 Lakh	20%	₹45,000
Total Tax		₹1,25,000

Tax Benefit:

Interim Budget Tax - Current Budget Tax = ₹1,30,000 - ₹1,25,000 = ₹15,000

Conclusion

The comparative analysis reveals that the current budget offers a mix of benefits and increased liabilities depending on the income bracket. Specifically:

• For a gross income of ₹10 Lakh, the current budget offers a benefit of ₹10,000.
• For a gross income of ₹12 Lakh, the current budget offers a benefit of ₹13,750.
• For a gross income of ₹15 Lakh, the current budget offers a benefit of ₹15,000.

These calculations emphasize the importance of understanding specific tax slab details to optimize financial planning for the fiscal year 2024-25.

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With regards,

K C Sahoo,

Accounts Officer, DoT HQ, New Delhi