Modi government has given big relief to the middle class and income tax payers. Finance Minister Nirmala Sitharaman has increased the limit of standard deduction for taxpayers from Rs 50 thousand to Rs 75 thousand. Apart from this, changes have been made once again in the New Tax Slab.
Actually, employed people were hopeful that this time the Finance Minister could give relief in Income Tax in the budget. The government has made changes in the new tax regime by increasing the standard deduction. The Finance Minister says that due to the change in the new tax slab, taxpayers will be able to save Rs 17500.
New tax regime revised (after new tax regime change)
No tax on income up to Rs 0 to 3 lakh
5% income tax on income of Rs 3 to 7 lakh
10% income tax on income of Rs 7 to 10 lakh
15% income tax on income of Rs 10 lakh to 12 lakh
20% income tax on income of Rs 12 lakh to 15 lakh
30% income tax on income above Rs 15 lakh
Earlier last year, changes were made in the new tax slab.
Earlier this new tax slab was (New Tax Slab- 2023)-
0% on Rs 0 to Rs 3 lakh
5% on Rs 3 to 6 lakhs
10 percent on 6 to 9 lakhs
15 percent on 9 to 12 lakhs
20 percent on Rs 12 to 15 lakh
30 percent on more than Rs 15 lakh
Old Tax Slab-
Upto Rs 2.5 lakh – 0%
2.5 lakh to 5 lakh – 5%
5 lakh to 10 lakh – 20%
Above Rs 10 lakh – 30%
Let us tell you, in the year 2020, the government had introduced a new tax slab, which was not liked by most of the income taxpayers. Then changes were made in the same last year. Earlier there were 6 tax slabs, which was changed to 5 tax slabs. Also announced that no tax will be paid on income of Rs 7 lakh. Under the new tax system, the basic exemption limit has been increased to Rs 3 lakh.