Lagatar24 Desk
New Delhi, Feb 1: No income tax till Rs 7 lakh in new tax regime, says FM Nirmala Sitharaman while presenting the budget on Wednesday.
“I introduced in 2020, the new personal income tax regime with 6 income slabs, starting from Rs 2.5 Lakhs. I propose to change the tax structure in this regime by reducing the number of slabs to 5 and increasing the tax exemption limit to Rs 3 Lakhs,” said FM Nirmala Sitharaman.
The new personal income tax rates are:
0 to Rs 3 lakhs – nil
Rs 3 to 6 lakhs – 5%
Rs 6 to 9 Lakhs – 10%
Rs 9 to 12 Lakhs – 15%
Rs 12 to 15 Lakhs – 20%
Above Rs 15 Lakhs – 30%
She added that the new tax regime will now be the default tax regime
Meanwhile, the average processing time for income tax returns reduced from 93 days to 16 days. The government intends to roll out next-gen common IT Return forms and strengthen grievance redressal mechanism.
