The Government of India has announced a historic change in income tax, providing major relief to the public. Finance Minister Nirmala Sitharaman revealed the new tax structure, stating that there will be no tax on annual income up to ₹12 lakh. This decision has brought significant relief to the middle-class taxpayers, increasing their savings and investment opportunities.
Previously, under the new tax regime, income up to ₹7 lakh was tax-free, but now it has been increased to ₹12 lakh. This will directly benefit millions of salaried employees and business owners.
The Finance Minister also clarified that the standard deduction of ₹75,000 will remain in place, providing taxpayers with additional savings.
The government has simplified and made the tax slabs more practical. The new tax slabs are as follows:
| Annual Income (in ₹) | Tax Rate (%) |
|---|---|
| 0 - 4 Lakh | 0% (No Tax) |
| 4 Lakh - 8 Lakh | 5% |
| 8 Lakh - 12 Lakh | 10% |
| 12 Lakh - 16 Lakh | 15% |
| 16 Lakh - 20 Lakh | 20% |
| 20 Lakh - 24 Lakh | 25% |
| Above 24 Lakh | 30% |
Announcement of the New Income Tax Bill:
The Finance Minister also announced that the new Income Tax Bill will be presented in Parliament next week. Under this bill, the tax framework will be made more transparent and simplified, which will make it easier for citizens to pay their taxes.
Benefits for the Middle Class:
The new tax slabs announced by the government are a golden opportunity for the middle class and salaried individuals. These changes will not only strengthen people’s financial positions but also enhance their investment and savings potential.
Now, it remains to be seen what further reforms the government brings in the upcoming budget. Until then, enjoy these changes and strengthen your financial planning!
