Massive announcement by Nirmala Sitharaman, no income tax up to ₹12 lakh per annum

In a massive relief to the middle class, union finance minister Nirmala Sitharaman on Saturday announced an increased income tax exemption for those with income up to ₹12 lakh per annum.

This means that people who earn under ₹12 lakh per annum will not have to pay any taxes.

“The middle class provide strengths to the economy. In recognition of their contribution, we have periodically reduced the tax burdens. I am now happy to announce that there will be no income tax up to an income of ₹12 lakhs,” Sitharaman said.

Nirmala Sitharaman also spelt out the details of the revised income tax slabs.

“I propose to revise tax rate structures as follows: 0 to ₹4 Lakhs – nil, ₹4 Lakhs to ₹8 Lakhs – 5%, ₹8 Lakhs to ₹12 Lakhs – 10%, ₹12 Lakhs to ₹16 Lakhs – 15%, ₹16 Lakhs to ₹20 Lakhs – 20%, ₹20 Lakhs to ₹24 Lakhs – 25% and above ₹24 Lakhs – 30%. To taxpayers up to ₹12 Lakhs of normal income other than special rate income such as capital gains, a tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them,” she added.