On the Personal Income Tax front, two announcements were made by the Finance Minister.
In the New Tax Regime, the standard deduction of salaried employees to be increased from 50 thousand rupees to 75 thousand rupees. New Tax Regime slab for taxpayers will be 0-3 lakh – Nil, 3-7 Lakh – 5 percent, 7-10- 10 percent, 10-12- 15 percent, 12-15- 20 percent and above 15- 30 percent.
Changes in Personal Income Tax under new tax regime
- Standard deduction for salaried employees increased from ₹50,000 to ₹75,000.
- Deduction on family pension for pensioners enhanced from ₹15,000/- to ₹25,000/-
- Revised tax rate structure:
| 0-3 lakh rupees | Nil |
| 3-7 lakh rupees | 5 per cent |
| 7-10 lakh rupees | 10 per cent |
| 10-12 lakh rupees | 15 per cent |
| 12-15 lakh rupees | 20 per cent |
| Above 15 lakh rupees | 30 per cent |
- Salaried employee in the new tax regime stands to save up to ₹ 17,500/- in income tax.
