Finance Minister Nirmala Sitharaman has made 2 big announcements for taxpayers in the budget. In the first announcement, she has increased the standard deduction in the new tax regime. The Finance Minister has increased the standard deduction for salaried employees from Rs 50 thousand to Rs 75 thousand. Apart from this, the Finance Minister has also increased the deduction on family pension. It has been increased from Rs 15 thousand to Rs 25 thousand. The Finance Minister said that this will benefit 4 crore salaried employees and pensioners.
Changes made in the slabs of the new tax regime
In another announcement related to income tax, the Finance Minister has changed the slabs of the new tax regime. The new tax slabs are:
- 0-3 Lakh – No tax
- 3-7 Lakh – 5%
- 7-10 Lakh – 10%
- 10-12 Lakh – 15%
- 12-15 Lakh – 20%
- Above Rs 15 lakh – 30%
The Finance Minister said that this change in the tax slab will benefit salaried employees by Rs 17,500.
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