The Union Budget will be presented today, Saturday, February 1, at 11:00 AM. This would be FM Nirmala Sitharaman’s 8th budget speech.
With taxation and the well-being of the middle-class becoming the top agenda, the income tax slabs have become a topic of discussion in the recent past.
Will there a relief to taxpayers, is something that remains to be seen, as we look forward to the Union Budget.
Here, we take a look at the existing tax regimes that govern the personal taxation realm in India.
Old Regime
In the Old Regime, citizens opting for the scheme with an income of Up to Rs 2,50,000 are not liable to pay taxes, ie no need to pay any tax. Thereafter, taxpayers with income in the range of Rs 2,50,001 – Rs.3,00,000 have to pay 5 per cent.
The income slab of Rs 3,00,001 – Rs 5,00,000 has a 5 per cent income tax.
Here, due to the tax rebate under 87a of the income tax act, individuals earning up to Rs 5,00,000 are not liable to pay taxes.
Furthermore, the income slab of Rs 5,00,001 to Rs 10,00,000 pays 20 per cent. And, in the last slab of Rs 10,00,001 and above, taxpayers are subjected to 30 per cent.
New Regime
Similarly, in the New Regime, citizens with an income of Up to Rs 3 lakh pay no taxes. Furthermore, taxpayers who earning between Rs 7 lakh pay 5 per cent, as a result of the Rebate u/s 87A available under the IT act, citizens earning up to Rs 7 lakh are not liable to pay tax.
Rs 7 lakh – Rs 10 lakh pay 10 per cent, Rs 10 lakh – Rs 12 lakh will pay 15 per cent, Rs 12 lakh – Rs 15 lakh are liable to pay 20 per cent and people earning above Rs 15 lakh pay 30 per cent.
