Changes to the income tax bands were revealed by Union Finance Minister Nirmala Sitharaman on February 1 during the Union Budget speech.
The Rebate Center advocated raising the rebate cap in the new tax system from the current *5 lakh to *7 lakh.
The new tax rates are as follows: 0 to 3L: no tax; 3L to 6L: 5%; 6L to 9L: 10%; 9L to 12L: 15%; 12L to 15L: 20%; and over 15L: 30%.
Typical deduction The salaried class and pensioners are now included in the standard deduction of $50,000.
Thus, a benefit of 52,500 will be received by each salaried person having a yearly income of at least *15.5 lakh.
A maximum tax rate of 39% The highest surcharge rate under the new tax system was decreased from 37% to 25%, which resulted in a reduction of the maximum tax rate to 39%.
A maximum tax rate of 39% The highest surcharge rate under the new tax system was decreased from 37% to 25%, which resulted in a reduction of the maximum tax rate to 39%.
Tax exemption for cashing in leave The amount needed to qualify for tax-free leave encashment for non-government salaried employees would increase from *3 lakh to *25 lakh.