Union Budget: No income tax up to Rs 12 lakh – A Guide for Taxpayers Finance Minister Nirmala Sitharaman announces zero income tax for up to Rs 12 lakh. Standard deduction for salaried employees set at Rs 75,000. Rejigged tax slabs explained.
Union Budget 2023: No Income Tax Up to Rs 12 Lakh – A Simple Guide for Taxpayers
In the latest Union Budget announcement, Finance Minister Nirmala Sitharaman has introduced a significant relief for taxpayers by declaring zero income tax for individuals earning up to Rs 12 lakh under the new tax regime. This change is poised to impact millions of taxpayers across India, making it essential to understand what this means for you.
Understanding the New Tax Regime
The rejigged tax slabs under the new tax regime have been designed to simplify the taxation process. Here’s a breakdown of the new structure:
- Income up to Rs 3 lakh: 0% tax
- Income from Rs 3 lakh to Rs 6 lakh: 5% tax
- Income from Rs 6 lakh to Rs 9 lakh: 10% tax
- Income from Rs 9 lakh to Rs 12 lakh: 15% tax
- Income above Rs 12 lakh: Applicable tax rates continue
This means that if you earn up to Rs 12 lakh, you will not have to pay any income tax, providing substantial savings for middle-class families.
Standard Deduction for Salaried Employees
In addition to the tax relief, the budget also introduces a standard deduction of Rs 75,000 for salaried employees. This deduction will help to lower the taxable income, allowing individuals to retain more of their hard-earned money. It’s a win-win for employees looking to maximize their take-home pay.
What Does This Mean for You?
With these changes, the government aims to boost disposable income, encouraging spending and saving. Taxpayers can now plan their finances better, leading to improved financial health in the long run.
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In conclusion, the new tax regime is set to bring a refreshing change for taxpayers, making it easier to manage finances while enjoying increased savings. Stay informed and make the most of these financial opportunities!
