New Delhi: Happy news for the middle class of India.
The Union Budget, presented by the Union Finance Minister Nirmala Sitharaman on Thursday, ensured a new tax regime for the country. There will be no tax up to 7 lakh rupees income, with 5 tax slabs as announced by the Finance Minister. But this comes with a caveat- this change is only for those who choose the New Tax Regime.
Tax slab under the new regime:
- 0-3 Lakhs- 0%
- 3-6 Lakhs- 5%
- 6-9 Lakhs- 10%
- 9-12 Lakhs- 15%
- 12-15 Lakhs- 20%
- Above 15 Lakhs- 30 %
After listing out the slabs, the minister also announced that the Old Tax Regime — which had a higher tax rate but several exemptions — will only be available on request now, and the new regime will thus be considered the default system for everyone.
According to the Finance Minister’s Budget Speech, the government will target a budget deficit of 5.9% of GDP for 2023/24, compared to 6.4% for the current fiscal year.
Observers feel that before the 9 State Elections, slated for 2023 and the big Parliament Elections slated for 2024, Sitharaman’s Income Tax slab revision will surely make the middle class vote bank cheerful.
