The union finance minister Dr. Nirmala Sitaraman today made a great announcement of granting tax exemption for the salaried class people of the country in particular making everyone jubilant.
Though, Delhi is on the election mode with polling on 5 th January and Delhi being the national capital has the largest number of government employees. This exemption on taxes up to Rs.12 lakhs annually has won the hearts of the service class in particular whether they are from private sector or government.
Now, there won’t be any tax on the annual income up to Rs.12 lakhs. Earlier the relief in tax was up to Rs.7 lakhs only but this time after the exemption limit raised to 12 laks annually there is an increase of exemption limit of 5 lakhs which is considered to be phenomenal.
This means on an average a person earning the income of one lakh rupees per month will not have to pay any tax and there will also be an annual tax deduction of Rs.75000.
The union finance minister Dr.Nirmala Sitaraman announced that the new income tax legislation will be presented in the house next week.
Enumerating revisions in tax slabs, the Finance Minister informed that incomes up to ₹4 lakhs would not be taxed, ₹4-8 lakh would host 5% taxation rate, ₹8-12 lakh 10%, ₹12-16 lakh 15%, ₹16-20 lakh 20%, ₹20-24 lakh 25% and incomes above ₹24 lakh 30%. A tax payer in the new regime with an income of ₹12 lakh will get a benefit of ₹80,000 in tax; a person having income of ₹18 lakh will get a benefit of ₹70,000 in tax; a person with an income of ₹25 lakh gets a benefit of ₹1.10 lakh, Ms. Sitharaman added.
The Finance Minister said, “The government is going to bring a new income tax bill next week, which will make the tax system more easy and transparent. Now the government’s thinking is first trust, then investigation. That is, the taxpayer will not have to face unnecessary notices and problems.
Along with this, the KYC process will also be simplified, due to which there will be less paperwork in banking and other financial transactions. Overall, this new bill will bring relief and convenience to the taxpayers.”
