Guwahati: In a move to provide some relief to middle-class taxpayers, Finance Minister Nirmala Sitharaman has announced there will be no income tax payable up to income of Rs 12 Lakh. The minister said that an average income of Rs. 1 lakh per month other than special rate income such as capital gains under the new regime. This limit will be 12.75 lakh for salaried taxpayers due to the standard deduction of Rs. 75,000.
She further mentioned that slabs and rates are being changed across the board to benefit all taxpayers. The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment. "In the new tax regime, I propose to revise the tax rate structure as follows -
- 0-4 lakh - Nil
- 4 lakh - 8 lakh - 5%
- 8 lakh -12 lakh - 10%
- 12 lakh - 16 lakh -15%
- 16 lakh - 20 lakh - 20%
- 20 lakh –24 lakh- 25%
- Above 24 lakh - 30%
However, to taxpayers up to 12 Lakh of normal income other than special rate income such as capital gains, a tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them, the finance minister said.
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