“I have two announcements to make for those opting for the new tax regime. First, the standard deduction for salaried employees is proposed to be increased from ₹50,000/- to 75,000/-. Similarly, the deduction on family pension for pensioners is proposed to be enhanced from ₹ 15,000/- to ₹ 25,000/-. This will provide relief to about four crore salaried individuals and pensioners.
Second, in the new tax regime, the tax rate structure is proposed to be revised as follows:
3-7 lakh rupees 5 percent
7-10 lakh rupees 10 percent
10-12 lakh rupees 15 percent
12-15 lakh rupees 20 percent
Above 15 lakh rupees 30 percent
As a result of these changes, a salaried employee in the new tax regime stands to save up to ₹ 17,500/- in income tax,” said Finance Minister Nirmala Sitharaman.
Here is a look at old regime tax slabs
1) Income up to ₹2.5 is exempt from taxation under the old tax regime.
2) Income between ₹2.5 to ₹5 lakh is taxed at the rate of 5 percent under the old tax regime.
3) Personal income from ₹5 lakh to ₹10 lakh is taxed at a rate of 20 per cent in the old regime
4) Under the old regime, personal income above ₹10 lakh is taxed at a rate of 30 per cent.
In the old tax regime, the income tax exemption limit is ₹3 lakh for senior citizens aged above 60 but less than 80 and ₹5 lakh for super senior citizens aged above 80.
This was Nirmala Sitharaman’s record-seventh consecutive budget. The budget session of Parliament began on July 22 and, according to schedule, will end on August 12.
