00:00I am now happy to announce that there will be no income tax payable up to income of 12 lakh rupees.
00:09So, average income of 1 lakh per month other than the special rate income such as capital
00:33gains under the new regime.
00:36This limit will be 12.75 lakh for salaried taxpayers due to the standard deduction of
00:4475,000.
00:45Slabs and rates are being changed across the board to benefit all taxpayers.
00:54The new structure will substantially reduce the taxes of the middle class and leave more
01:00money in their hands, boosting household consumption, savings and investment.
01:06In the new tax regime, I propose to revise tax rate structures as follows.
01:130 to 4 lakh rupees nil, 4 to 8 lakh rupees 5%, 8 to 12 lakh rupees 10%, 12 to 16 lakh
01:26rupees 15%, 16 to 20 lakh rupees 20%, 20 to 24 lakh rupees 25%, and above 24 lakh
01:35rupees 30%.
01:39To taxpayers up to 12 lakh of normal income other than special rate income such as capital
01:49gains, tax rebate is being provided in addition to the benefit due to slab rate reduction
02:05in such a manner that there is no tax payable by them.
02:10The total tax benefit of slab rate changes and rebate at different income levels can
02:17be illustrated with a few examples.
02:20A taxpayer in the new regime with an income of 12 lakh rupees will get a benefit of 80,000
02:28rupees in tax, which is 100% of tax payable as per the existing rates.
02:36A person having income of 18 lakh rupees will get a benefit of 70,000 rupees in tax, that
02:46is 30% of tax payable as per existing rates.
02:51A person with an income of 25 lakh gets a benefit of 1 lakh 10,000 rupees, that is 25%
02:59of his tax payable as per existing rates.
03:03Details of my tax proposals are given in the annexure.
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