Income Tax: Every year, the salaried class demands relief in income tax with full force. But during the budget presented in February 2023, Finance Minister Nirmala Sitharaman had announced a big relief for the middle class.
Nirmala Sitharaman Budget 2025: Finance Minister Nirmala Sitharaman will present the budget for the eighth consecutive time on February 1. This time it will be the second full budget of the third term of the NDA government led by Prime Minister Modi. In every budget, the most discussed topic is the relief in income tax and the announcement regarding farmers. In the budget presented in July 2024, the Finance Minister gave relief to the middle class by increasing the limit of standard deduction to Rs 75,000 under the new tax regime. Apart from this, many steps have been taken by the government to provide relief to the middle class on various things including income tax. Income up to Rs 7 lakh is tax free
Amidst all this, the budget presented by Finance Minister Nirmala Sitharaman in the year 2023 is discussed among the middle class till date. In this budget, the biggest relief was given to the employed middle class. Taxpayers got the most benefit from the announcement made by Finance Minister Nirmala Sitharaman regarding income tax. On February 1, 2023, Nirmala Sitharaman, during her budget speech, announced not to pay any kind of tax on income up to Rs 7 lakh under the new tax regime.
Crores of salaried class got benefit
Crores of salaried class people have got the most benefit of this income tax exemption given by the government. After this, in the budget presented in July 2024, the limit of standard deduction under the new regime was increased to 75000. With this change, people earning up to Rs 7.75 lakh every year will not have to pay any kind of tax. After this change in the rule, people were in doubt as to what would happen to those earning more than Rs 7 lakh?
What is the New Tax Regime?
The New Tax Regime was first introduced by the government in the financial year 2020-21. The tax rate in this is low but some tax deductions and exemptions have been abolished under it. Under this, a standard deduction of Rs 50,000 was included in the year 2023. After one year, it was increased to Rs 75000. Under the new tax regime, there is no tax on income of 0-3 lakhs per annum. After this, 5 percent tax has to be paid on 3 to 6 lakhs, 10 percent on 6 to 9 lakhs, 15 percent on 9 to 12 lakhs, 20 percent on 12 to 15 lakhs and 30 percent tax has to be paid on income of more than 15 lakhs.
What is the old tax regime?
In the old tax regime, no tax has to be paid on annual income up to Rs 2.5 lakh. According to this, taxpayers will have to pay tax at the rate of 5% on annual income of Rs 2.5 lakh to 5 lakh. If the annual income is 5 lakh to 10 lakh, then tax will have to be paid at the rate of 20 percent. But 30 percent tax will be levied on income above Rs 10 lakh. But under this, you get many different types of tax benefits.
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