1. Nirmala Sitharaman announced a new income tax slab and tax rate earning up to Rs 15 lakh annually in the last budget. However, it was only for those who do not want to take advantage of tax exemption.
2. Currently, there are 7 tax slabs in India and the tax rate is different for each group. There are currently three categories of personal taxpayers. In this, people below 60 years of age, those above 60 but below 80 years of age and those above 80 years of age are included.
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3. The new tax system states that there is no need to pay income tax to a person earning Rs 2.5 lakh annually. Those earning from Rs 2.5 lakh to Rs 5 lakh annually in the next slab. They will have to pay tax at the rate of 5 percent. Similarly, a person earning Rs 5 to 7.5 lakhs per annum will have to pay tax at the rate of 15 per cent and a person earning Rs 7.5 to 10 lakh.
4. Agla tax slab is for people earning Rs 10 lakh to 12.5 lakh, who will pay tax at the rate of 20 percent. After this, those earning from Rs 12.5 lakh to Rs 15 lakh will have to pay 25 percent tax. Those earning more than 15 lakhs will have to pay tax at the rate of 30 percent.
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5. You have to remember that under this new tax structure, you will not get the benefit of tax exemption like paying home tax, insurance or standard deduction etc. At present, taxpayers have the opportunity to choose the right option for themselves only after understanding the advantages and disadvantages of both the structures.