Millions of taxes of the country The Finance Minister has given a big gift to Pairs today. The Finance Minister has announced to increase the income tax exemption limit of Rs 12 lakh under the New Tax Regime. That is, people whose income will be annual income of Rs 12 lakh, they will have to pay zero tax. At the same time, standard dictionary of 75 thousand rupees has also been announced for employed people. That is, if the annual income of the employed people will not have to pay any tax if it is 12.75 lakhs. However, there is zero tax from 0 to 4 lakh lakhs in the New Tax Resetam. After that a slab of 5% on 4 to 8 lakhs and 10% on 8 to 12 lakhs. If you are also confused about this tax slab, then let’s remove your confusion.
Understand the complete mathematics of tax slab
Tax Advisor and CA Kailash Goduka told India TV that so far the Basic Tax Examination Limit in the New Tax Regime is Rs 3 lakh. At the same time, the Income Tax Rebet Limit Rs 7 lakh. Still, income of 3 lakh to 7 lakhs is taxed at the rate of 5%, but the government forgives it under 87A. Therefore, income up to Rs 7 lakh becomes tax free.
Now the government has made changes. The government has increased the Basic Tax Examination Limit to Rs 4 lakh. At the same time, tax has been imposed at the rate of 5% on annual income of 4 lakh to 8 lakh rupees and 10% on 8 lakh to 12 lakh income. In this way, a total tax will be made on the income of 12 lakhs.
Think of it like this
Annual income | Tax rate |
Total tax
|
0 to 4 lakh rupees | 0% | 0 rupees |
4 to 8 lakh rupees | 5% | 20000 rupees |
8 to 12 lakh rupees | 10% | 40000 rupees |
Total Tax: 60 thousand rupees |
Relief will be given by increasing exemption under 87A
Now the government has decided to make income free up to Rs 12 lakh. After this, the exemption under Section 87A from the Assessment Year 2026-27 will be increased in this way. Under this, the maximum discount will increase from Rs 25,000 to Rs 60,000. In this way, income up to Rs 12 lakh will be absolutely free. However, this discount will not apply to special category income like capital gains.
Tax will have to be paid if 12 lakhs more than 12 lakhs
Exemption under Section 87A means that if your net taxable income is up to Rs 12 lakh, then you will get tax benefits which effectively makes your tax liability zero. However, you will have to pay tax when income of 1 rupee increases.
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