{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.indusind.com\/iblogs\/fixed-deposit\/new-tax-regime-how-taxpayers-can-save-up-to-%e2%82%b917500-a-year-in-income-tax\/#BlogPosting","mainEntityOfPage":"https:\/\/www.indusind.com\/iblogs\/fixed-deposit\/new-tax-regime-how-taxpayers-can-save-up-to-%e2%82%b917500-a-year-in-income-tax\/","headline":"New Tax Regime: How Taxpayers Can Save up to \u20b917,500 a Year in Income Tax","name":"New Tax Regime: How Taxpayers Can Save up to \u20b917,500 a Year in Income Tax","description":"Budget 2024, announced by Finance Minister Nirmala Sitharaman on 23 July 2024, brings several changes aimed at boosting the economy and providing relief to taxpayers. Among the various announcements, the most crucial attraction is the revamped New Tax Regime (NTR). Designed to simplify taxation, the NTR introduces higher standard deductions and revised tax slabs, which...","datePublished":"2024-07-31","dateModified":"2024-07-31","author":{"@type":"Person","@id":"https:\/\/www.indusind.com\/iblogs\/author\/vinayak\/#Person","name":"Vinayak","url":"https:\/\/www.indusind.com\/iblogs\/author\/vinayak\/","image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/83880c90630f0d98ec7d461acb74bdf6?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/83880c90630f0d98ec7d461acb74bdf6?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"IndusInd","logo":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/logo-2.png","width":201,"height":86}},"image":{"@type":"ImageObject","@id":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/New-Tax-Regime-How-taxpayers-can-save-up-to-Rs-17500-a-year-in-income-tax-min.jpg","url":"https:\/\/www.indusind.com\/iblogs\/wp-content\/uploads\/New-Tax-Regime-How-taxpayers-can-save-up-to-Rs-17500-a-year-in-income-tax-min.jpg","height":288,"width":764},"url":"https:\/\/www.indusind.com\/iblogs\/fixed-deposit\/new-tax-regime-how-taxpayers-can-save-up-to-%e2%82%b917500-a-year-in-income-tax\/","about":["Fixed Deposit"],"wordCount":1002,"keywords":["fixed deposit"],"articleBody":"Budget 2024, announced by Finance Minister Nirmala Sitharaman on 23 July 2024, brings several changes aimed at boosting the economy and providing relief to taxpayers. Among the various announcements, the most crucial attraction is the revamped New Tax Regime (NTR). Designed to simplify taxation, the NTR introduces higher standard deductions and revised tax slabs, which may allow individuals to save income tax and get financial benefits.Specifically, the adjustments in Budget 2024 are expected to allow taxpayers to save up to \u20b917,500 under the new tax regime. But how? Let\u2019s find out.Key Changes in the New Tax RegimeIncreased Standard Deduction: For employees opting for the new tax regime, the standard deduction has been increased from \u20b950,000 to \u20b975,000 (under Section 115BAC).Revised Tax Slabs: The income slabs have been structured as follows to promote tax saving in the new regime:Income Tax SlabsIncome Tax RateUp to \u20b93,00,0000%\u20b93,00,001 to \u20b97,00,0005%\u20b97,00,001 to \u20b910,00,00010%\u20b910,00,001 to \u20b912,00,00015%\u20b912,00,001 to \u20b915,00,00020%\u20b915,00,001 and above30%How the Changes in New Tax Regime Could Save You \u20b917,500 Annually?Suppose a taxpayer earns a little over \u20b915,00,000 annually and falls in the 30% tax bracket. Here\u2019s how they can save \u20b917,500 every year.\u20b93-7 Lakh IncomeUnder the previous regime, the tax liability for \u20b93 to 6 lakh was \u20b915,000Now, with the slab extending to \u20b97 lakh, the tax liability increases to \u20b920,000This results in an additional tax of \u20b95,000 (5% of \u20b91,00,000)Savings in the \u20b910-12 Lakh Income BracketPreviously, the tax liability for \u20b99 to 12 lakh would come around \u20b945,000With the new slabs, the tax liability for income between \u20b910 to 12 lakh remains at 15%, bringing it to \u20b930,000The savings here amount to \u20b915,000 (\u20b945,000 – \u20b930,000)Considering both I and II, the overall savings till now are \u20b910,000 (\u20b915,000 – \u20b95,000).Additional Standard DeductionThe standard deduction increase from \u20b950,000 to \u20b975,000 means additional savings of \u20b925,000For someone in the 30% tax bracket, this equates to \u20b97,500 saved (30% of \u20b925,000)When you combine the savings from tax slab changes and increased standard deduction, you get \u20b910,000 + \u20b97,500 = \u20b917, 750.Making the Most of Your Tax Savings with IndusInd Bank Fixed DepositsAs you can see, Budget 2024 has made it possible to save an extra \u20b917,500 that you would otherwise have paid as tax. Consider investing this additional cash wisely. IndusInd Bank Fixed Deposits offer a safe avenue to place your savings and earn a high interest rate. Besides predictable and risk-free returns, enjoy additional features like:Open a fixed deposit account quickly from anywhereA 100% digital process means only your Aadhaar and PAN card details are requiredSave on taxes by booking a five-year tax-saving FDComplete video KYC and effortlessly book an FD with a flexible amountDecide how often you want to get interest payments (monthly, quarterly, every six months, yearly, etc.)Also Read: Navigating the Benefits of Auto-Renewal Fixed DepositsKey TakeawaysBudget 2024 brings substantial relief to taxpayers through revised tax slabs and increased standard deductions under the new tax regime. These changes ensure that taxpayers, especially those in the middle and higher income brackets, can save up to \u20b917,500 annually.As you navigate these changes, adding stable investment options like IndusInd Bank Fixed Deposits could further solidify your financial stability and growth. Benefit from best-in-class interest rates, hassle-free online booking, flexible tenure, and multiple interest payout options. Give your hard-earned money the financial boost it deserves.Book NOW!Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct\/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.Share This:"}