NEW DELHI: In a major announcement, Union Finance Minister Nirmala Sitharaman said that income up to Rs 12 lakh will not attract any income tax. The new slabs under the new regime are: 5% on the income amount of Rs 4 to 8 lakh, 10% between Rs 8 to 12 lakh, 15% on Rs 12 to 16 lakh, 20% on Rs 16 to 20 lakh, 25% on Rs 20 to 24 lakh, and 30% if income exceeds Rs 24 lakh.
She also proposed withdrawing TCS on remittances made for education purposes, funded through loans from specified financial institutions. It will be an attempt to decrease the financial stress of a student and that of his family. It will withdraw TCS on transactions relating to sale of goods for ease and simplicity in the compliances required from businesses.
Another move towards the benefits of senior citizens is the raising of the threshold of Tax Deducted at Source by the Finance Minister to Rs 1 lakh from Rs 50,000. This adjustment is likely to give them further relief in terms of finances.
In addition, the time to file Income Tax Returns has been increased from two years to four years, giving taxpayers more adequate room for handling their tax duties.
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