Union Minister Nirmala Sithraman has changed income tax slabs and cut income tax rates for earnings up to Rs 15 lakh per year, making it optional for taxpayers who will then have to let go of 70 exemptions.
As per the new income tax structure, those earning up to Rs 5 lakh will not have to pay any tax. The list of 30 other exemptions that will be allowed are not known yet.
The new tax slabs and rates according to the FM are as follows: 10% for income between Rs 5 lakh-7.5 lakh. 15% for income between Rs 7.5 lakh-10 lakh. 20% for income between Rs 10-12.5 lakh. 25% for income between Rs 12.5 -15 lakh. 30% for income above Rs 15 lakh.