By bringing down their tax liability to nil, FM Sitharaman unveiled the bonanza at a time when they least expected it
Representation pic
The big-ticket announcement by Finance Minister Nirmala Sitharaman regarding the income tax slab for an income up to Rs 12 lakhs brought wide cheers to the faces of the middle-class and taxpayers. By bringing down their tax liability to nil, FM Sitharaman unveiled the bonanza at a time when they least expected it. However, these changes are applicable only to the New Tax Regime.
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How taxpayers will benefit
What was the earlier income limit for nil tax?
Earlier, the limit of income for nil tax payment was Rs 7 lakh. By increasing this limit to R12 lakh, around one crore assesses who were earlier required to pay tax varying from Rs 20,000 to Rs 80,000 will now pay nil tax.
Who will benefit from changes in tax slabs?
The new tax regime applies to a person, or Hindu undivided family or association of persons [other than a co-operative society], or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2. Accordingly, changes in tax slabs will benefit all these persons.
What benefits a taxpayer can avail?
Any individual, who earlier was required to pay a tax of Rs 80,000 (in the new regime) for an income of R12 lakh, will be required to pay nil tax on such income.
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