Income Tax Slab Changed: The government has given a big gift in the income tax slab to put money in the hands of the middle class. Now even those earning more than Rs 24 lakh will get a chance to save more than Rs 1 lakh.
Income Tax Slab Changed : The 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 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. In the new regime, till now 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% tax on income from Rs 4 to 8 lakh
- 10% tax on income from Rs 8 to 12 lakh
- 15% tax on income from Rs 12 to 16 lakh
- 20% tax will be levied on income from Rs 16 to 20 lakh.
- 25% tax will be levied on income from Rs 20 to 24 lakh.
- 30% 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 lakh to Rs 18 lakh will get a benefit of Rs 70 thousand, which is a 33 percent benefit.
- Those earning up to Rs 25 lakh will get a benefit of Rs 1.10 lakh, which is a 25 percent benefit under the old regime.
Separate benefit of Rs 75 thousand
The Finance Minister has not only excluded income up to Rs 12 lakh from the scope of income tax, but has also maintained the standard deduction of Rs 75 thousand. 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.
