​According to the Union Budget 2024, what is the revised tax slab limit for the 5% tax rate under the new tax policy?

Correct option is B

The correct answer is: (b) ₹7 lakh

Explanation:

• In Union Budget 2024, under the new tax regime, individuals with income up to ₹7 lakh are not required to pay tax due to the rebate under Section 87A.

• This effectively makes ₹7 lakh the revised exemption limit, though the 5% slab applies between ₹3 lakh to ₹6 lakh.

• The aim is to provide tax relief to middle-income earners and encourage adoption of the new tax regime.

Information Booster:

• The new regime has 5 slabs: 5%, 10%, 15%, 20%, and 30%.

• Standard deduction of ₹50,000 is now available in both tax regimes.

• The old regime continues with exemptions like HRA, LTA, and 80C benefits.

• Section 87A rebate is applicable only to residents with income up to ₹7 lakh.

• Finance Minister for Budget 2024: Nirmala Sitharaman.

• Union Budget 2024 focused on inclusive development, green growth, and tax reforms.