Income Tax: Finance Minister Nirmala Sitharaman has announced a big relief for middle class and high income class. He announced a change in tax slab and additional rebate under the New Tax Regime, under which no income tax will have to be paid on income up to Rs 12 lakh. Along with this, taxpayers will get a chance to save a big savings at various levels of income.
New tax rates:
There will be big savings due to special discounts
The Finance Minister said that along with the new tax rates, additional discounts will also be given to taxpayers. Its effect will be as follows:
On income of Rs 12 lakh – taxpayers will save Rs 80,000, which is equal to 100% tax waiver according to the current rates.
On income of Rs 18 lakh – a direct tax exemption of Rs 70,000 will be available, which is 30% tax relief at current rates.
On income of Rs 25 lakh – Taxpayers will save Rs 1.10 lakh, which is 25% tax relief according to the current rates.
How will the general public benefit?
This new system is especially beneficial for middle class, employed people and businessmen. Due to the new slab and exemption, taxpayers will save more money in their hands, which they can use in expenses, investment or savings. This is likely to accelerate domestic demand and economy.
Government will suffer revenue loss of Rs 1.02 lakh crore
Due to this tax exemption and new slab system, the government will suffer direct tax of Rs 1 lakh crore and indirect tax of Rs 2,600 crore.