Finance Minister Nirmala Sitharaman’s announcement in the budget about the new tax regime aims to provide relief to middle-class taxpayers. Under this regime, individuals with salaries up to Rs 12 lakh will not have to pay any income tax, with an allowance for the standard deduction raising the threshold to Rs 12.75 lakh for salaried individuals.
The new tax slabs are designed to reduce the tax burden on the middle class, leaving more disposable income for consumption, savings, and investment. Here are the revised tax slabs:
0 – 4 lakh: Nil
4 – 8 lakh: 5%
8 – 12 lakh: 10%
12 – 16 lakh: 15%
16 – 20 lakh: 20%
20 – 24 lakh: 25%
Above 24 lakh: 30%
These changes are expected to have a positive impact on the household economy and further stimulate economic growth.