Finance Minister Nirmala Sitharaman in her Budget speech did announce the much-expected overhaul in personal income tax income rules. Not only did she increase the income cap for no tax from Rs 7 lakh to 12 lakh, she has also changed the income tax slabs under the New Tax regime.
Under the new tax regime, there is no tax till Rs 4 lakh and from Rs 4 lakh to Rs 8 lakh there will be 5% slab and from Rs 8 lakh to Rs 12 lakh, slab rate will be 10%.
From Rs 12,00,001 to Rs 16 lakh, there will be 15% tax slab and from R 16,00,001 to Rs 20 lakh, there will be 20 tax slab.
From Rs 20,00,001 to Rs 24 lakh, tax slab will be 25%. For those who are earning above Rs 24 lakh, tax slab will be 30%.
So, anyone whose annual taxable income is more than Rs 12 lakh, in fact Rs 12.75 lakh, will be taxed as per the new tax slab.
