In a major announcement, Union government hiked income tax rebate limit to ₹7 lakh under the new tax regime.
Finance Minister Nirmala Sitharaman added that the new tax regime will now be the default tax regime.
The FM also reduced the number of tax slabs in the new tax regime.
They are as follows: Tax for income of Rs 0-3 lakh is nil; income above Rs 3 lakh and up to Rs 5 lakh to be taxed at 5%; income of above Rs 6 lakh and up to Rs 9 lakh to be taxed at 10%; income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20%; and income above Rs 15 lakh to be taxed at Rs 30%.
