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Aug 29, 2024 1 min read

New Income-tax Slab Rates, New Deduction Limits and Employer Contribution Rates

On the 16th of August 2024, the President of India approved the 2024/25 Budget. The budget was presented by the Finance Minister on the 23rd of July 2024. The Budget introduces new Income-tax slabs, rates, new deduction limits and employer contribution rates.

See detailed changes below:

Previous and new income-tax slabs for the new tax regime:

Tax Slabs (Amounts in INR) Period 01-04-2023 31-03-2024 Period 01-04-2024 31-03-2025
Up to 300,000 Nil Nil
300,001 – 600,000 5% of excess over 300,000 –
300,001 – 700,000 – 5% of excess over 300,000
600,001 – 900,000 10% of excess over 600,000 –
700,001 – 1,000,000 – 10% of excess over 700,000
900,001 – 1,200,000 15% of excess over 900,000 –
1,000,001 – 1,200,000 – 15% of excess over 1,000,000
1,200,001 – 1,500,000 20% of excess over 1,200,000 20% of excess over 1,200,000
Over 1,500,001 30% of excess over 1,500,000 30% of excess over 1,500,000

Increase in deduction and employer contributions:

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.

Employer of Record (EOR) India | PEO India | Payroll in India

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India – 2024/25 Budget Changes – 01 April 2024
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