In a big win for individual taxpayers, Union Finance Minister Nirmala Sitharaman on Saturday, February 1, hiked the income tax exemption limit to Rs 12 lakh per annum under the New Tax Regime. She said from the next financial year, taxpayers will not have to pay income tax till Rs 12 lakh.
Finance Minister Sitharaman said, “The middle class provide strengths to the economy. In recognition of their contribution, we have periodically reduced the tax burdens. I am now happy to announce that there will be no income tax up to an income of Rs 12 lakhs.”
Check new tax regime:
Up to Rs 4 lakh – 0%
Rs 4-8 lakh – 0%
Rs 8-12 lakh – 0%
Rs 12-16 lakh – 15%
Rs 16-20 lakh – 20%
Rs 20-25 lakh – 25%
Above Rs 25 lakh – 30%
Sitharaman said the personal Income Tax reforms will focus on the middle-class and the democracy, demography and demand are the key support builders in a journey towards ‘Viksit Bharat’.
