What does the Rs 12 lakh rebate mean? What will you pay if you earn above that?

No, the rebate is lone applicable for those earning up to Rs 12 lakh. If your taxable income is adjacent a rupee much than Rs 12 lakh, you volition person to wage taxes arsenic per the slab rates nether the caller taxation regime. Earlier, those earning up to Rs 12 lakh paid a taxation of Rs 80,000 nether the caller taxation regime.

This means that if your taxable income is, say, Rs 12.1 lakh, your taxation liability would beryllium Rs 61,500.

This is because, if your income is supra Rs 12 lakh you volition person to wage a taxation of 5% connected income betwixt Rs 4 lakh to 8 lakh; 10% connected income betwixt Rs 8 lakh to 12 lakh and 15% betwixt Rs 12 lakh to 16 lakh.

So an idiosyncratic earning Rs 15 lakh volition extremity up paying a taxation of Rs 1,05,000.

What is the payment for those earning supra Rs 15 lakh?

The FM has provided significant savings for adjacent those earning supra Rs 15 lakh by mode of crisp chopped successful taxation rates for incomes falling betwixt Rs 15 lakh and Rs 24 lakh.

While earlier, successful the caller taxation regime, incomes supra Rs 15 lakh were taxed astatine 30%, the FM has projected to taxation incomes betwixt Rs 12 lakh to 16 lakh astatine 15%; income betwixt Rs 16 lakh and 20 lakh astatine 20%; and that betwixt Rs 20 lakh and 24 lakh astatine 25%. Now, 30% complaint volition beryllium applicable lone for income supra Rs 24 lakh.

The FM has announced that those earning supra Rs 24 lakh volition person savings of up to Rs 1.1 lakh nether the caller taxation regime.

© The Indian Express Pvt Ltd