The Modi government of the country has given a big relief to the salaried people in the latest full budget. Presenting the budget in Parliament, Finance Minister Nirmala Sitharaman has announced income tax exemption of up to Rs. 7 lakhs for the general public, which means that now those earning up to Rs. 7 lakhs will not have to pay income tax. However, to benefit from this, a new tax regime will have to be chosen.
In fact, till now there was no tax for those earning up to Rs. 5 lakhs, but now even those earning up to Rs. 7 lakhs will not have to pay any tax at all. In other words, there was an exemption of up to Rs 5 lakhs in the new and old tax rebate, which has now been increased to Rs 7 lakh. Along with this, the tax exemption limit has been increased from Rs 2.5 lakh to Rs 3 lakh. Middle-income earners will also benefit from this.
This will be the benefit of the new system.
- Now there will be no tax on income up to Rs 3 lakhs.
- Now those earning up to Rs 3-6 lakhs per annum will have to pay a 5% tax.
- Now annual income up to Rs 6-9 lakhs will be taxed at 10%.
- Now there will be no tax for those earning less than Rs 7 lakh per annum. Those opting for this new tax regime will get benefits.
- Those earning between Rs 9-12 lakh a year will be taxed at 15 per cent.
- It is believed that those earning up to Rs 15.5 lakh will get a benefit of Rs 52 lakh.
- Those who are earning between Rs 12 lakh and Rs 15 lakh per annum will be taxed at 20 percent.
- Those with annual income above Rs 15 lakh will have to pay up to 30 percent tax.