New Delhi: Tagging it as the ‘highest priority’ budget for the poor, women, youth and farmers, the Union Finance Minister Nirmala Sitharaman, on Thursday, presented the interim Union Budget in the parliament, mentioning that there would be no change in the tax rates for direct or indirect taxes. The tax slabs remain the same for both new and old income tax regimes.
This was the interim budget presented and the full budget will be floated in July by the incoming government, whether a re-elected or new one.
Let’s have a look below about the tax slabs:
New regime tax slabs
- No tax would be levied for income up to ₹3 lakh
- If your income is between ₹3-6 lakh, you will be taxed at 5 per cent (tax rebate under Section 87A is available)
- For employees with income between ₹6-9 lakh would be taxed at 10 per cent (tax rebate under Section 87A on income up to ₹7 lakh is available)
- Those earning between ₹9-12 lakh, would be taxed at 15 per cent
- Income between ₹12-15 lakh at 20 per cent
- For individuals having income of ₹15 lakh and above will be taxed at 30 per cent.
Also, there is no change in the tax slabs basis on categories such as individuals, senior citizens, and super senior citizens.
For individuals following the old tax regimes, the tax would fall under:
- Income up to ₹2.5 is exempt from taxation under the old tax regime.
- For an individual having income between ₹2.5 to ₹5 lakh is taxed at the rate of 5 per cent under the old tax regime.
- Personal income from ₹5 lakh to ₹10 lakh is taxed at a rate of 20 per cent in the old regime
- If you fall under the old regime, personal income above ₹10 lakh is taxed at a rate of 30 per cent.
Meanwhile, in the old tax regime, the income tax exemption limit was up to ₹3 lakh for senior citizens aged above 60 years but less than 80 years, and up to ₹5 lakh for super senior citizens aged above 80 years.