Nirmala Sitharaman in her full budget ahead of next year’s general elections gave relief to middle class and employed people on the tax front. Under this, no tax will be levied on income up to Rs 7 lakh under the new tax regime. Sitharaman proposed this while presenting the last full budget of this government in Parliament on Wednesday. Apart from this, for the first time, the benefit of standard deduction has also been proposed under the new tax regime.
Under the proposal made in the budget, there will be no tax on income up to seven lakh rupees. In the old tax regime, an income of Rs 2.5 lakh would attract zero income tax. While income from Rs 2.5 lakh to Rs 5 lakh will be taxed at 5 per cent, income from Rs 5 lakh to Rs 10 lakh at 20 per cent and income above Rs 10 lakh at 30 per cent.
In the new tax regime, no tax will be levied on income up to three lakh rupees under the income tax slab. 5 percent on Rs.3 lakh to Rs.6 lakh, 10 percent on Rs.6 to 9 lakh, 15 percent on Rs.9 lakh to Rs.12 lakh and 20 percent on Rs.12 lakh to Rs.15 lakh and above Rs.15 lakh. will be taxed at 30 per cent.