In the budget, Finance Minister Nirmala Sitharaman has given a big gift to millions of income tax payers of the country. The Finance Minister has announced to increase the income tax exemption limit to Rs 12 lakh. This will save taxpayers and there will be more money in hand to spend. This is also good news for the Indian economy. Increasing demand will accelerate the Indian economy, which will also boost the Indian market.

Tax slab rate in new income tax

No tax will have to be paid on income of 12 lakhs.

Zero tax will have to be paid on income of 0 to 4 lakhs

Tax at the rate of 5% will have to be paid on annual income of 4 to 8 lakhs.

Tax at the rate of 10% will have to be paid on annual income of Rs 8 to 12 lakhs.

Tax at the rate of 15% will have to be paid on annual income of Rs 12 to 16 lakhs. 16 to 20 lakh rupees annual income will have to be taxed at the rate of 20%.

10% tax will have to be paid on annual income of 8 to 12 lakh rupees.

25% income tax will have to be paid on annual income of 20 to 24 lakh rupees.

30% tax will have to be paid on income above 24 lakh rupees.

Standard deduction limit increased to 75 thousand rupees.

Standard deduction limit for salaried people has been increased to 75 thousand rupees in the budget. Till now this limit was 50 thousand rupees. After this increase, salaried people will not have to pay any tax on income up to Rs 12.75 lakh.