The Union Budget session started in Parliament today, with Finance Minister Nirmala Sitharaman unveiling key changes to the country’s tax policies, which started the debate over the new tax slabs.
Clarifying the wide speculation surrounding the budget, the Finance Minister announced that the taxpayers earning up to ₹12 lakh annually would no longer be subjected to income tax, bringing significant relief to the middle class, who form the backbone of India’s economy.
Sitharamam clarified, “In addition to reduced slab rates, taxpayers who earn an income of ₹12 lakh or lower without special income such as capital gains will see tax rebate-amounting to zero tax incidence.
The new income tax slabs, effective from today are as follows:
₹0 to ₹4 lakh: 0%
₹4 lakh to ₹8 lakh: 5%
₹8 lakh to ₹12 lakh: 10%
₹12 lakh to ₹16 lakh: 15%
₹16 lakh to ₹20 lakh: 20%
₹20 lakh to ₹24 lakh: 25%
₹24 lakh and above: 30%
Significantly, the tax slab of 10% for people with a turnover of ₹8 lakh to ₹12 lakh would get relief during the filing of taxes. There would be no tax due at all.
It has been welcomed throughout the country since the new tax policy is deemed a game-changer for the middle class. The social media has welcomed this announcement with vast approval, and many consider this step as relief from financial burdens and support towards the nation’s economic growth.
