In her 7th record Union Budget, Nirmala Sitharaman announced key employment schemes and also revised the tax structure in the new tax regime, while the slabs in old regime remain unchanged.
Here are the key changes in Income Tax act as per today Budget :
01. Income tax slab changes in New tax regime :
0 to 3,00,000 Rupees – NIL
3,00,000 to 7,00,000 – 5 %
7,00,000 to 10,00,000 – 10%
10,00,000 to 12,00,000 – 15%
12,00,000 to 15,00,000 – 20%
Above 15,00,000. – 30%
02. Standard deduction for salaried employees increased from 50000/- to 75000/-
03. Short term capital gains on certain Financial assets increased from 15% to 20%
04.LTCG upto 1,25,000/- is tax free
05.All LTCG is 12.5% No indexation anymore
06. Employer contribution to NPS has increased 10% from 14%
07. Deduction on family pension for pensioners increased from 15000/- to 20000/-
08. Corporate income tax has decreased from 40% to 35%
These are the Major changes that has huge impact on Individuals & Corporates as well.
We have prepared an customized excel that shows impact of how todays budget will have an impact on all types of taxpayers.
Here is the excel
You can input your salary and calculate net effect on your tax liability based on this excel.
Do share with your friends!
Thank You!
