Union Finance Minister Nirmala Sitharaman, during the presentation of the interim Budget on Thursday, announced that there would be no changes to taxation, and she proposed to retain the same direct and indirect tax rates, including import duties.
Sitharaman also highlighted that the average time for refunds has been reduced from 93 days in 2013-2014 to just 10 days in the last year. Furthermore, she said that the average real income of people has increased by 50 per cent.
"I propose to retain the same tax rates for direct and indirect taxes, including import duties," Sitharaman added. Sitharaman announced that the government proposes to withdraw tax demands of up to Rs 25,000 up to 2009-10, to benefit 1 crore taxpayers.
New Regime Tax Slabs:
- No tax on income up to Rs 3 lakh.
- Income between Rs 3-6 lakh taxed at 5 per cent (tax rebate under Section 87A available).
- Income between Rs 6-9 lakh taxed at 10 per cent (tax rebate under Section 87A on income up to Rs 7 lakh available).
- Income between Rs 9-12 lakh taxed at 15 per cent.
- Income between Rs 12-15 lakh taxed at 20 per cent.
- Income of Rs 15 lakh and above taxed at 30 per cent.
The tax rates in the new regime are the same for all categories of individuals, including individuals, senior citizens, and super senior citizens.
Old Regime Tax Slabs:
- Income up to Rs 2.5 lakh is exempt from taxation.
- Income between Rs 2.5 to Rs 5 lakh is taxed at a rate of 5 per cent.
- Personal income from Rs 5 lakh to Rs 10 lakh is taxed at a rate of 20 per cent.
- Personal income above Rs 10 lakh is taxed at a rate of 30 per cent.
In the old regime, the income tax exemption limit was up to Rs 3 lakh for senior citizens aged above 60 but less than 80 years, and up to Rs 5 lakh for super senior citizens aged above 80 years. The full budget will be presented in July by the incoming government, whether re-elected or new.
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