In a significant relief to employees, the central government has announced an increase in the standard deduction from ₹50,000 to ₹75,000 in the Union Budget.
Additionally, the new tax regime features revised income tax slabs as follows:
5% on income from ₹3 lakh to ₹7 lakh
10% on income from ₹7 lakh to ₹10 lakh
15% on income from ₹10 lakh to ₹12 lakh
20% on income from ₹12 lakh to ₹15 lakh
30% tax on income above ₹15 lakh
These changes are expected to save employees up to ₹17,500.
However, there has been no modification to the existing tax regime, which has disappointed those who continue under the old system. Despite the relief offered through the revised slabs, critics argue that Finance Minister Nirmala Sitharaman has not provided sufficient respite for taxpayers who hoped for more significant changes.