In the new tax regime, the tax rate structure is proposed to be revised as follows:
- 0 to 3 lakh rupees: Nil
- 3 to 7 lakh rupees: 5 percent
- 7 to 10 lakh rupees: 10 percent
- 10 to 12 lakh rupees: 15 percent
- 12 to 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 rupees in income tax," Finance Minister Nirmala Sitharaman said during her budget presentation on Tuesday.
'' 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 Rs. 50,000 to Rs. 75,000. Similarly, the deduction on family pension for pensioners is proposed to be enhanced from Rs. 15,000 to Rs. 25,000. This will provide relief to about 4 crore salaried individuals and pensioners," the FM said.
Tax relief and revised tax slabs in new tax regime
- Income tax saving of up to Rs 17,500/- for salaried employees in the new tax regime
- Income Tax Relief for around four crore salaried Individuals and Pensioners
- Standard deduction for salaried employees to be increased from Rs 50,000/- to Rs 75,000/-
