No Income Tax Upto Rs 12 Lakh, Announces Finance Minister.

Finance Minister Nirmala Sitharaman’s Union Budget speech introduced the New Income Tax Bill, emphasising simplicity and ‘nyay’ for taxpayers. No income tax applies up to Rs 12 lakhs of income, provided certain deductions and exemptions are utilised.

The tax slabs are as follows:

No tax on annual income up to Rs 2.5 lakhs, 5% tax on income between Rs 2.5 lakhs and Rs 5 lakhs, and higher rates for income above Rs 5 lakhs, with a maximum rate of 30% for income exceeding Rs 12.5 lakhs.