Major changes in the income tax from the old regime have been made in this year's Union Budget. Finance Minister Nirmala Sitharaman announced a number of changes in the income tax regime.
The Narendra Modi government has presented its second budget in the Lok Sabha. The second Modi government did not announce any changes in the income tax structure in the interim budget. But after the Modi government came to power for the third time, there was speculation whether there would be any change in income tax in the budget.
Finance Minister Nirmala Sitharaman announced a reduction in the prices of gold, silver and mobile phones.
The Finance Minister presented the budget on Tuesday. She announced a number of tax cuts. Although no changes have been announced in the income tax in the old regime, several changes have been made in the new regime. Under the new system, the standard deduction has been increased from Rs 50,000 to Rs 75,000. Taxpayers can save up to Rs 17,500 in the new regime.
The Union Minister of Finance announced the income tax exemption:
No income tax will be levied on income between Rs 0 and Rs 3 lakh.
Income between Rs 3 lakh and Rs 7 lakh will be taxed at 5 per cent.
Annual income between Rs 7 lakh and Rs 10 lakh will be taxed at 10 per cent.
Annual income between Rs 10 lakh and Rs 12 lakh will be taxed at the rate of 15 per cent.
From Rs 12 lakh to Rs 15 lakh, the tax will be 20 per cent.
Income above Rs 15 lakh per annum is taxed at the rate of 30 per cent.
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