New Delhi. Modi government has changed the entire tax slab giving the biggest relief in the history of income tax. Now even those earning up to Rs 24 lakh will get a chance to save Rs 1.10 lakh.
Finance Minister Nirmala Sitharaman made such an announcement in the budget speech that the salaried people have hit the jackpot. She has not only increased the relief of zero income tax to Rs 4 lakh, but has also changed all the income tax slabs.
The Finance Minister has made income up to Rs 12 lakh tax free without worrying about the loss of Rs 1 lakh crore in the government treasury. All these changes have been made in the new tax regime, the old regime has not been touched in any way. Till now, in the new regime, there was zero tax on income up to Rs 3 lakh, now it has been directly increased to Rs 4 lakh.
What will be the new tax slab?
- Zero tax on income up to Rs 4 lakh
- 5 per cent tax on income from Rs 4 to 8 lakh
- 10 per cent tax on income from Rs 8 to 12 lakh
- Only 15 per cent tax on income from Rs 12 to 16 lakh
- 20 per cent tax will be levied on income from Rs 16 to 20 lakh.
- 25 per cent tax will be levied on income from Rs 20 to 24 lakh.
- 30 per cent tax will be levied only on income above Rs 24 lakh.
Who will save how much money?
- Those earning up to Rs 12 lakh will directly benefit by Rs 80 thousand.
- Those earning between Rs 12 to 18 lakh will benefit by Rs 70 thousand, which is a 33 percent profit.
- Those earning up to Rs 25 lakh will benefit by Rs 1.10 lakh, which is a 25 percent profit under the old regime.
The Finance Minister has not only exempted income up to Rs 12 lakh from income tax, but has also maintained the standard deduction of Rs 75,000. In this way, the total tax exemption will be Rs 12.75 lakh. That is, those earning up to Rs 12 lakh 75 thousand will not be charged any tax. You will have to pay tax only on earning more than this and the slab has been reduced in that too .
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