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Tax Slabs May Be Altered In The New Tax Regime; Tax Savings Of Upto Rs. 80000 Possible

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As per the discussions held in the Budget 2021 exercise, it is strongly suggested that taxpayers can get a relief in the range of Rs. 50000- Rs. 80000 in the total tax liability.

And if we go by the break up, there can be an increase in the limit of standard deduction i.e. allowed to pensioners and salaried class in the old income tax regime. While for the new income tax regime, a change in tax slab is likely. In the last Budget, the new income tax regime was introduced.

Tax Slabs May Be Altered In New Tax Regime; Taxpayers May Save Upto Rs. 80000
 

In the new tax regime, tax shall apply at a lower rate and taxpayers would need to do away with some of the allowed deductions and exemptions available under the old regime. As of now, taxpayers are not much keen about the new regime and to make it popular the centre may offer more opportunity in the regime to taxpayers to save taxes.

Tax slabs under the new tax regime

Income scale Tax rate
Income up to Rs. 2.5 lakh No tax
Rs. 2.5 lakh and Rs. 5 lakh 5%
Rs. 5 lakh to Rs. 7.5 lakh 10%
Rs. 7.5 lakh to Rs. 10 lakh 15%
Rs 10 to 12.5 lakh 20%
Rs 12.5 to 15 lakh 25%
Rs. 15 lakh and above 30%

Also, in the old regime, there is being sought an increase in standard deduction which can be increased up to Rs. 1 lakh from the current Rs. 50000 limit and there could be also be extended tax relief on housing loan.

GoodReturns.in

Read more about: budget 2021 income tax
Story first published: Wednesday, January 27, 2021, 18:24 [IST]
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