Reposing faith in the middle class and giving relief from tax burden to the common tax–payer, Finance Minister Nirmala Sitharaman announced that there will be no tax up to Rs 12 lakh income.
“There will be no income tax payable upto income of Rs. 12 lakh (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be Rs 12.75 lakh for salaried tax payers, due to standard deduction of Rs. 75,000.”
Tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them, the Finance Minister added.
Sitharaman further stated, “The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment”. In the new tax regime, the Finance Minister proposed to revise tax rate structure as follows:
The total tax benefit of slab rate changes and rebate at different income levels can be illustrated in the table below:
New Tax Bill next week
Highlighting tax reforms as one of key reforms to realize the vision of Viksit Bharat, FM Nirmala Sitharaman said that the new income-tax bill that will be brought next week, will carry forward the spirit of ‘Nyaya’.
She said the new tax regime will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation.
The Finance Minister quote Verse 542 from The Thirukkural and stated, “Just as living beings live expecting rains, citizens live expecting good governance.”
Income Tax Slab under New Regime: Finance Minister Nirmala Sitharaman announced that there will be no income tax payable for the income at to Rs 12 lakh in the new tax regime. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
