Finance Minister Nirmala Sitharaman announced that no income tax will be levied on those who earn utmost Rs 7 lakh per annum. “No income tax for people with income up to Rs 7 lakh per annum,” she said. She also proposed an increase in rebate limit to income of Rs 7 lakh.
Making the new income tax regime the default tax regime, citizens will have option to use old tax regime.
Highest surcharge reduced from 37 per cent to 25 per cent in new tax regime.
Person with income of Rs 15.5 lakh crore or more will get benefit of up to Rs 52,000
Individual with income of Rs 9 lakh to pay only Rs 45000 as tax. Individual with income of Rs 15 lakh to pay only Rs 1.5 lakh
Reducing number of slab reduced to five, tax exemption limit increased to Rs 3 lakh.
Income Tax slabs under New tax regime
0-3 lakh nil
3-6 lakh 5%
6-9 lakh 10%
9-12 lakh 15%
12-15 lakh 20%
above 15 lakh 30%