New Delhi : As expected the finance minier Nirmala Seetharaman today given a big tax relief for lower and middle-income groups. Except for those earning above Rs 15 lakhs a year, the tax burden has come down considerably. This will be a boost for individuals and help to boost consumption.
Annoucing the major slash in income tax rate, Seetharam said,”We propose to bring a personal income tax regime, where income tax rates will be reduced, so now, person earning between Rs 5-7.5 lakhs will be required to pay tax at 10% against current 20%,” Sitharaman said.
New Tax slab (without exemptions):
No tax: 0-2.5
5% between 2.5-5 lakh
10% tax between 5-7.5 lakh
15% between 7.5-10 lakh
20% between 10 lakh-12.5 lakh
25% between 12.5-15 lakh
30% between above 15 lakh
However, those who wish to claim rebates and concessions are free to file taxation under the old regime. Government claims that individuals will not require help of any professionals to file their TDS under the new regime.
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