New Delhi: Finance Minister Nirmala Sitharaman has given relief to taxpayers, but to those who will opt for the new income tax regime. Tax payers opting for the old tax regime will continue to pay tax as before. For those opting for the new tax regime, the rebate limit has been raised to Rs 7 lakh. Earlier it was 5 lakh rupees. But if your income exceeds Rs 7 lakh by even one rupee, then you will not get the benefit of this rebate. You have to pay tax. However, the Finance Minister has also announced new slabs for those earning more than Rs 7 lakh. Income up to Rs 3 lakh will now be tax free for them.
Now no tax up to 7 lakh
At present, those having taxable income of Rs 5 lakh were not required to pay any tax in both the tax regimes. Now this limit will be seven lakh rupees. This limit of exemption has been increased in the new tax regime. No announcement has been made regarding the change in the slab of the old regime.
Income tax slab changed
In the new regime, the threshold limit for exemption from income tax has been raised to Rs 3 lakh. Earlier this limit was Rs 2.5 lakh.
This will give great relief to the taxpayers joining the new system. If a person's annual income is Rs 9 lakh, then he will have to pay tax of Rs 45 thousand only. It will be only five percent of his income. He will have to pay 25 per cent less tax. Earlier, where he had to pay tax of 60 thousand rupees. Now instead of that only 45 thousand tax will have to be paid. Similarly, if someone has an annual income of Rs 15 lakh, then he will have to pay tax of Rs 1.5 lakh only. This will be 10% of his income. He will now have to pay 20 per cent less tax. Earlier he had to pay tax of Rs 1,87,500.
The new slabs under new tax regime are:
Up to Rs 3 lakhs: Nil
From Rs 3-6 lakhs: 5%
From Rs 6-9 lakhs: 10%
From Rs 9-12 lakhs: 15%
From Rs 12-15 lakhs: 20%
Above Rs 15 lakhs: 30%
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