The government has said in the union budget that if there is income up to Rs 12 lakh annually, then you will not have to pay tax. This is a big relief in tax. Due to this, 75-80 percent people who file income tax returns will not be required to pay tax. But, if a person’s income is more than Rs 12 lakh annually, then he will have to pay tax according to the income tax slab. Taxpayers have tried to clarify the situation in this case. Let’s know what they have to do.
Now Rs 60,000 rebate under section 87A
Tax experts say that the government has given a special rebate to pay tax on income up to Rs 12 lakh annually. This Rebet Income Tax Act (Income tax act) Section is found under section 87A. In fact, in the new regimen of income tax, till now, tax on income of up to Rs 7 lakh was zero. For this, the government gives a rebate of Rs 25,000 under Section 87A. Now instead of Rs 7 lakh annually, tax on income up to Rs 12 lakh will be taxed annually. For this, the government has increased the rebate received under Section 87A to Rs 60,000.
Rebate will not be available on more than 12 lakh rupees
If the income of a taxpayers is slightly more than Rs 12 lakh annually, then its tax will be zero from the margin relief. But, if the income is much higher than Rs 12 lakh, then he will have to pay tax according to the slab of income tax. Finance Minister Nirmala Sitharaman also announced a change in the slab in the new regimen of 1 February Income Tax. The new slab has tax zero on income of Rs 4 lakh annually. Tax on income up to Rs 4 lakh and up to Rs 8 lakh is 5 percent.
Now 30% tax on more than 24 lakh income in new regim
Tax on income of more than 8 lakhs and up to 12 lakhs is 10 percent, tax on 12 lakhs and 15% on income up to 16 lakhs. Tax is more than 16 lakhs and 20 percent on income of up to 20 lakhs. Tax on income of more than 20 lakhs and up to 24 lakhs is 25 percent. Tax on more than 24 lakh income is 30%.
Also read: Inox Tax: If income is Rs 12 lakh, then you will not have to file income tax returns?
Tax calculation will be done on more income
Tax experts say that if a person has income of 13 lakh or more, then he will have to pay tax according to the new slab. This means that his income up to Rs 4 lakh will be taxed at 5 percent. Income from 8 to 12 rupees will be taxed at 10 percent. Income of more than Rs 12 lakh will be taxed at 15 percent. Experts say that since the Finance Minister has changed the tax slab, the tax of taxpayers with 1.3 million or 14 lakh annual grossing will be reduced considerably now. Prior to February 1, 2025, the new tax slab was more in the new tax slab. 30 percent tax was levied on earnings more than Rs 15 lakh.