Standard deduction limit: Finance Minister Nirmala Sitharaman has increased the limit of standard deduction for taxpayers from Rs 50,000 to Rs 75,000. Apart from this, changes have been made once again in the New Tax Slab.
Standard deduction limit: Modi government has given a big relief to the middle class and income tax payers. Finance Minister Nirmala Sitharaman has increased the limit of standard deduction for taxpayers from Rs 50 thousand to Rs 75 thousand. Along with this, changes have been made once again in the New Tax Slab.
Actually, in this budget, Finance Minister Nirmala Sitharaman did not increase the basic exemption limit in the old tax regime. Also, no change has been made in the tax rate. In such a situation, those who choose the old tax regime will not get the benefit of increasing standard deduction.
Actually, employed people were hoping that the Finance Minister could give relief in Income Tax in the budget this time. The government has increased the standard deduction and made changes in the new tax regime. The Finance Minister says that by changing the new tax slab, taxpayers will be able to save at least Rs 17500.
New tax regime revised (after the new tax regime changes)
No tax on income from 0 to 3 lakhs
5% income tax on income from 3 to 7 lakhs
10% income tax on income from 7 to 10 lakhs
15% income tax on income between Rs 10 lakh and Rs 12 lakh
20% income tax on income between Rs 12 lakh and Rs 15 lakh
30% income tax on income above Rs 15 lakh
Earlier, changes were made in the new tax slab last year.
Earlier this was the new tax slab (New Tax Slab- 2023)-
0% on 0 to 3 lakh
5% on 3 to 6 lakh
10% on 6 to 9 lakh
15% on 9 to 12 lakh
20% on 12 to 15 lakh
30% on more than 15 lakh
Old Tax Slab-
Up to 2.5 lakhs – 0%
2.5 lakhs to 5 lakhs – 5%
5 lakhs to 10 lakhs – 20%
Above 10 lakhs – 30%
Let us tell you, in the year 2020, the government introduced the New Tax Slab, which was not liked by most of the taxpayers. Then it was changed last year. Earlier there were 6 tax slabs, which were changed to 5 tax slabs. Also, it was announced that no tax will be paid on income of Rs 7 lakh. Under the new tax system, the basic exemption limit has been made Rs 3 lakh.
