New Income Tax Slabs Introduced: Tax Savings Huge for Earners Up to ₹15 Lakh. TDS Limit Also Revised.

New Income Tax Slab: Savings of Rs 35,000 for Income up to Rs 15 Lakh

 

With the new income tax slabs, individuals earning up to Rs 15 lakh can save Rs 35,000 on their tax. This includes the benefits from section 87A.

Current New Tax Regime

 

• • Income from Rs 3 lakh to Rs 7 lakh: Tax of Rs 20,000

 

• • Income from Rs 7 lakh to Rs 10 lakh: Tax of Rs 30,000

 

• • Income from Rs 10 lakh to Rs 12 lakh: Tax of Rs 30,000

 

• • Income from Rs 12 lakh to Rs 15 lakh: Tax of Rs 60,000

 

• • Total Tax: Rs 1,40,000

 

Proposed New Tax Regime

 

• • Income from Rs 4 lakh to Rs 8 lakh: Tax of Rs 20,000

 

• • Income from Rs 8 lakh to Rs 12 lakh: Tax of Rs 40,000

 

• • Income from Rs 12 lakh to Rs 15 lakh: Tax of Rs 45,000

 

• • Total Tax: Rs 1,05,000

 

 

Total Savings: Rs 35,000

Benefits for Senior Citizens

 

The government has introduced measures to support senior citizens. The TDS limit on interest has been increased from Rs 50,000 to Rs 1 lakh for senior citizens.

Increased Basic Rebate Limit

 

In the latest budget, the basic rebate limit under the New Tax Regime has been raised from Rs 3 lakh to Rs 4 lakh. Previously, it was increased from Rs 2.5 lakh to Rs 3 lakh.

Enhanced Benefits for Government Employees

 

Government employees stand to gain significantly from the budget announcement, as they will not pay tax on income up to Rs 12.75 lakh, thanks to additional standard deductions.

Tax Savings for Higher Income Brackets

 

Under the new regime, individuals earning up to Rs 18 lakh will benefit from reduced tax obligations:

 

• • Income from Rs 3 lakh to Rs 7 lakh: Tax of Rs 20,000

 

• • Income from Rs 7 lakh to Rs 10 lakh: Tax of Rs 30,000

 

• • Income from Rs 10 lakh to Rs 12 lakh: Tax of Rs 30,000

 

• • Income from Rs 12 lakh to Rs 15 lakh: Tax of Rs 60,000

 

• • Income from Rs 15 lakh to Rs 18 lakh: Tax of Rs 90,000

 

• • Total Tax: Rs 2,30,000

 

New Tax Structure Overview

 

The proposed tax structure under the new regime is as follows:

 

• • Up to Rs 4 lakh: No tax

 

• • Rs 4 lakh to Rs 8 lakh: 5% tax

 

• • Rs 8 lakh to Rs 12 lakh: 10% tax

 

• • Rs 12 lakh to Rs 16 lakh: 15% tax

 

• • Rs 16 lakh to Rs 20 lakh: 20% tax

 

• • Rs 20 lakh to Rs 24 lakh: 25% tax

 

• • Above Rs 24 lakh: 30% tax

 

No Tax for Income up to Rs 12 Lakh

 

In a significant relief for taxpayers, Finance Minister Nirmala Sitharaman announced that there will be no tax on annual income up to Rs 12 lakh under the new tax regime.

Additional Benefits for Senior Citizens

 

The budget also includes increased tax exemption limits for senior citizens, raising the TDS limit on interest income to Rs 1 lakh, with the TDS on rent now at Rs 6 lakh.