Income Tax payers:
No changes in the old tax regime
New tax regime to become the default tax regime. However, citizens can opt for the old tax regime.
No tax on income up to Rs 7.5 lakh a year in new tax regime (with inclusion of standard deduction)
Govt proposes to reduce highest surcharge rate from 37% to 25% in new tax regime
New Income Tax Slabs Under New Tax Regimes:
Rs 0-3 lakh: Nil
Rs 3-6 lakhs: 5%
Rs 6-9 lakhs: 10%
Rs 9-12 lakhs: 15%
Rs 12-15 lakhs: 20%
Rs Over 15 lakhs: 30%
An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000 in taxes
Income of Rs 15 lakh will fetch Rs 1.5 lakh tax, down from Rs 1.87 lakh
A Rs 50,000 standard deduction to taxpayers has been introduced under the new regime
Payment received from Agniveer Corpus Fund by Agniveers to be exempted
Tax exemption removed in insurance policies with premium over Rs 5 lakh
For online games, govt proposes to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of fiscal
Tax exemption on leave encashment on retirement of non-government salaried employees hiked to Rs 25 lakh from Rs 3 lakh.
A higher limit of Rs 3 crore for TDS on cash withdrawal to be provided to co-operative societies.
Next-generation Common IT Return Form to be rolled out for tax payer convenience
Grievance redressal mechanism to be strengthen.
TDS rate to be reduced from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases
