No Tax Up To Rs 12 Lakh

New Delhi: Individuals earning up to Rs12 lakh annually will not have to pay any income tax under the new tax regime as Finance Minister Nirmala Sitharaman on Saturday gave relief to middle class by raising exemption limit and rejigging slabs.

For salaried employees, this nil tax limit will be Rs12.75 lakh per annum, after taking into account a standard deduction of Rs75,000. Higher exemptions and rejigs have been effected under the new income tax regime. “I am now happy to announce that there will be no income tax payable up to income of Rs12 lakh (i.e. average income of Rs1 lakh per month other than special rate income such as capital gains) under the new regime,” the finance minister said.

“The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment,” Sitharaman said in her Budget speech. As per the rejig, for people earning more than Rs12 lakh per annum, there will be nil tax for income up to Rs4 lakh, 5 per cent for income between Rs4 and 8 lakh, 10 per cent for Rs8-12 lakh, 15 per cent for Rs12-16 lakh.