The government is considering reducing income tax rates for those earning 15 to 17 lakh rupees annually. The central government is going to present budget next month for this. Union Finance Minister Nirmala Sitharaman is holding continuous meetings. The common man has great expectations of relief from this budget. PM Modi had said that the middle class is the driver of the country’s development and their well-being and convenience is our priority.
Government’s preparation for the budget is in full swing
The government is considering reducing the income tax rates for those earning 15 to 17 lakh rupees annually. According to sources in the Finance Ministry, the government can make changes in the (New Tax Regime). The Modi government had launched the new tax regime in previous terms. The lower tax is made under the new tax regime for those earning 15 to 17 lakh rupees annually. Under the new tax regime, the government gives income tax exemption on annual income up to Rs 7 lakh. Under the Old Tax Regime, there is no tax on annual income up to Rs 5 lakh. So , by new one there is no tax on income up to Rs 7.50 lakh per annum.
New Tax Regime Income Tax Slabs
In the new tax regime, there is no tax on salary up to Rs 0-3 lakh annually. In new tax regime 5% tax is levied on 3 to 6 lakhs, 10% on 6 to 9 lakhs, 15% on 9 to 12 lakhs, 20% on 12 to 15 lakhs and 30% tax on income above 15 lakhs. Also, 4% is levied as health and education.
