Finance Minister Nirmala Sitharaman made many such announcements on 1 February, in which your big benefit is hidden. Their effort is to make income tax rules easier and give relief to middle class. The changes he has made in tax rules will save more money in the hands of middle class families. They will be able to use this money for buying things of their needs or for savings and investment.
1. Income up to Rs 12 lakh annually will not be taxed
If your annual income is up to Rs 12 lakh, then you will not have to pay tax. This advantage of income tax is new (New regime of income tax) People who use it will get. Earlier, income does not have to be paid on income up to Rs 7 lakh annually. Now there will be no tax on annual income of up to Rs 12 lakh. For this, the government has increased the rebate received under section 87A of the Income Tax Act from Rs 25,000 to Rs 60,000.
2. Changes in tax slab in new regimen
The government has made a big change in the tax slab in the new regimen. In this, the income of up to Rs 4 lakh annually has been tax-free. Tax will be 5 percent on income of more than 4 lakhs and up to 8 lakhs. Income of more than 8 lakhs and up to 12 lakhs will be taxed at 10 percent. Income of more than 12 lakhs and up to Rs 16 lakh will be taxed at 15 percent. Income of more than 16 lakhs and up to 20 lakhs will be taxed at 20 percent. There is 25 percent tax on income of more than 20 lakhs and up to 24 lakhs. 30 percent tax will have to be paid on more than 24 lakh income. With the change in tax slab, more income will have to be paid less than earlier.
3. You will get more time to file updated returns
Taxpayers will now get more time to file update returns. Right now there was 24 months time to file updated returns. Nirmala Sitharaman has increased it to 48 months. However, it is important to note that you have to pay more tax to file updated returns.
Also read: If your income is slightly more than 12 lakhs, then you will get marginal relief, know what is this relief and what is benefit
4. If you have two houses then no tax
If you have two houses then you do not have to worry about tax. Earlier, after fulfilling certain special conditions, the second house was exempted from tax. Now those conditions have been removed. If you have two houses, both will be accepted for self-oxypayad i.e. for the use of yourself. If you have a third house, then only you have to pay tax on it. This change will give a lot of relief to the middle class.