Presenting her seventh straight Union budget, Finance Minister Nirmala Sitharaman announced that the structure of the new tax regime will be revised to benefit people with less than Rs10 lakh annual income.
Here is the revised tax rate under New Tax Regime
Rs 0-3 lakh - No tax
Rs 3-7 lakh - 5 per ccent
Rs 7-10 lakh - 10 per cent
Rs 10-12 lakh - 15 per cent
Rs 12-15 lakh - 20 per cent
Above Rs 15 lakh - 30 per cent
Before the revision, the tax rate for those having an annual income Rs 3 lakh to Rs 6 lakh was 5 per cent, and those within the income bracket of Rs 6 lakh to Rs 9 lakh had pay a tax of 10 per cent. Those falling within the salary bracket of Rs 9 lakh to Rs 12 lakh were taxed 15 per cent.
However, 20 per cent tax will continue to be levied on income between Rs 12-15 lakh and 30 per cent for income above Rs 15 lakh.
The standard deduction for salaried employees is proposed to be increased from Rs 50,000 to Rs 75,000 annually. Similarly, the deduction on family pension for pensioners is proposed to be enhanced from Rs 15,000 to Rs 25,000.
"This will provide relief to about four crore salaried individuals and pensioners," Sitharaman said.
