New Tax Regime Slabs: Benefit For The Salaried Employees!

The moment had arrived as the Union Government announced the budget. There are many highlights in the Union Cabinet that need attention. Out of all the highlights, the tax regime announced in the Union Cabinet is a big take away as it would benefit the majority of the employees.

In the Union Cabinet, the New Tax Regime Slabs were changed. While there is no tax up to the slab of Rs 3 lakhs the next slabs underwent some changes. Rs 3-7 lakhs slab attracts a 5 percent tax. Earlier the slab was restricted to just 6 lakhs and the same is pushed to the 7 lakh mark.

From Rs 7-10 lakhs the rate is 10 percent. Earlier Rs 6-9 lakh slab attracted the same tax. Rs 10-12 lakh slab will attract 15 percent followed by Rs 12-15 lakh and Rs 15 lakh with 20 percent and 30 percent respectively.

Pushing the slabs further would benefit the majority of working people. However, the new changes won't apply if the taxpayers opt for the old tax scheme.

While the taxpayers would have a big relief with the new slabs the same is the case with pensioners too. The standard deduction was pushed to Rs 75,000 from the existing Rs 50,000. This would help in tax savings.

While the standard deduction amount is increased to Rs 75,000 from Rs 50000 in the new budget, family pensioners' standard deduction is Rs 25,000 which is up from Rs 15000.

We have to say that the Government came up with some good news as far as the tax is concerned. The limits in the slabs were increased so that the tax burden would come down slightly. The new tax slabs will come into effect from the financial year and they will get the benefits in the next financial year.