Where has Finance minister Nirmala given tax exemption?
Finance minister Nirmala Sitharaman has given a big relief to the taxpayers while presenting the first full budget for the eighth consecutive time and the third term of the Modi government. Under the new tax regime, those earning Rs 12 lakh annually will no longer have to pay any income tax. This will reduce the tax burden on the middle class, which will give them more money to spend. This will help in increasing domestic consumption, savings and investment.
No tax on income up to Rs 12.75 lakh
Finance minister Sitharaman has given a big relief to salaried pensioners through her budget. people who earn up to Rs 12 lakh annually will not have to pay any tax in the new financial year 2025-26. That is, income up to Rs 12 lakh has become tax-free. The relief is that taxpayers will continue to get the benefit of standard deduction of Rs 75000 per year in the new regime. This means that taxpayers whose annual income is Rs 12.75 lakh will not have to pay any tax.
Big change in tax slab in new tax regime
Big change has been made in tax slab in new income tax regime. No tax will have to be paid on income up to Rs 4 lakh. 5% tax will have to be paid on income up to Rs 4 lakh, 10% on income up to Rs 8 - 12 lakh, 15% on income up to Rs 12 - 16 lakh, 20% on income up to Rs 16 - 20 lakh, 25% on income up to Rs 20 - 24 lakh and 30% tax will have to be paid on income above Rs 24 lakh. Due to this change in the tax slab, people with income between Rs 8 lakh to Rs 25 lakh will save tax from Rs 30000 to Rs 1,10,000. Also, taxpayers whose annual income is Rs 12 lakh will save tax of Rs 80000.
Tax deduction limit doubled for senior citizens
The Finance minister has given a big gift to senior citizens. It has been announced to increase the TDS limit on interest for senior citizens. The TDS limit for senior citizens has been increased from the current Rs 50000 to Rs 1 lakh. That is, the limit of TDS deducted on interest up to Rs 50000 on FD in banks has been increased to Rs 1 lakh.
TDS limit on rent increased to Rs 6 lakh
The Finance minister has increased the TDS limit on rent from the current level of Rs 2.40 lakh to Rs 6 lakh per annum. This will reduce the number of transactions for TDS.
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