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Thursday, February 22, 2024

No income tax for those earning up to Rs 7 lakh per annum: Union Budget


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New Delhi: Union Finance Minister Nirmala Sitharaman on Wednesday brought smiles to the middle class by raising the tax rebate limit to Rs 7 lakh under new tax regime.

This means people with income up to Rs 7 lakh per annum will effectively pay no income tax.

Sitharaman also announced a benefit of Rs 52,000 for individuals with Rs 15 lakh per annum income.

“Currently, those with an income of Rs 5 lakh do not pay any income tax and I propose to increase the rebate limit to Rs 7 lakh in the new tax regime,” she said while presenting Union Budget 2023.

While a five per cent tax will be levied on total income between Rs 3 lakh and Rs 6 lakh, 10 per cent will be levied on Rs 6 lakh to Rs 9 lakh, 15 per cent on Rs 9 lakh to Rs 12 lakh, Sitharaman said.

Also 20 per cent tax will be levied on Rs 12 lakh to Rs 15 lakh and 30 per cent on Rs 15 lakh and above, she added.

Sitharaman announced reducing the highest surcharge from 37 percent to 25 percent, meaning the maximum tax rate now reduces to 39 percent.

She also announced that the New Tax Regime will now be the default tax regime.

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