No income tax up to Rs 12 lakh: Know the revised slabs under new regime

The Narendra Modi 3.0 government has taken some load off the middle class, finally.

In a much-needed revision, the government has by raised the exemption limits and rejigged the income tax slabs under the new regime to reduce the burden on taxpayers. Here are the revised tax slabs:

Up to Rs 4 Lakh: Nil

Rs 4-8 lakh: 5%

Rs 8-12 lakh: 10%

Rs 12-16 lakh: 15%

Rs 16-20 lakh: 20%

Rs 20-24 lakh: 25%

Above Rs 24 lakh: 30%

Also read: Budget Live: Big relief for salaried and middle class: No I-T up to Rs 12 lakh

Under the new regime, salaried employees with an annual income of up to Rs 12 lakh won’t have to pay any income tax.

After taking into account a standard deduction of Rs 75,000, this nil tax limit will be Rs 12.75 lakh per annum. Therefore, salaried taxpayers with an annual income of up to Rs 12.75 lakh will have to pay no tax.

“I am now happy to announce that there will be no income tax payable up to income of Rs 12 lakh (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime,” Finance Minister Nirmala Sitharaman said.

Also read: Budget: Top 10 announcements: Cheer for farmers, women and gig workers

She added that the new tax structure will leave more money in the hands of the middle class, boosting household consumption, savings, and investment.

A taxpayer in the new regime with an income of Rs 12 lakh will get a benefit of Rs 80,000 in tax; one with an income of Rs 18 lakh will get a benefit of Rs 70,000 in tax, and one with an income of Rs 25 lakh gets a benefit of Rs 1.10 lakh.

(With agency inputs)