New Delhi: Finance Minister Nirmala Sitharaman all set to present the Union Budget 2022 shortly.
The most pressing demand from individual taxpayers is to bring changes in the income-tax slabs and increase the rebates under section 80C, 80EE, 80EEA and 24(b) of the Income Tax Act so as to give them more breathing space for running the household.
We shall only know what is in FM Sitharaman's kitty after she rises to present the Budget in Parliament. Meanwhile, here's is looking at the current slab for Individual (resident or non-resident) less than 60 years of age.
| Existing Tax Regime | New Tax Regime u/s 115BAC | ||
|---|---|---|---|
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
| Up to Rs 2,50,000 | Nil | Up to Rs 2,50,000 | Nil |
| Rs 2,50,001 - Rs 5,00,000 | 5% above Rs 2,50,000 | Rs 2,50,001 - Rs 5,00,000 | 5% above Rs 2,50,000 |
| Rs 5,00,001 - Rs 10,00,000 | Rs 12,500 + 20% above Rs 5,00,000 | Rs 5,00,001 - Rs 7,50,000 | Rs 12,500 + 10% above Rs 5,00,000 |
| Above Rs 10,00,000 | Rs 1,12,500 + 30% above Rs 10,00,000 | Rs 7,50,001 - Rs 10,00,000 | Rs 37,500 + 15% above Rs 7,50,000 |
| Rs 10,00,001 - Rs 12,50,000 | Rs 75,000 + 20% above Rs 10,00,000 | ||
| Rs 12,50,001 - Rs 15,00,000 | Rs 1,25,000 + 25% above Rs 12,50,000 | ||
| Above Rs 15,00,000 | Rs 1,87,500 + 30% above Rs 15,00,000 | ||
It is to be noted that individuals and HUFs can opt for the Existing Tax Regime or the New Tax Regime with lower rate of taxation (u/s 115 BAC of the Income Tax Act). The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain Exemptions and Deductions (like 80C, 80D,80TTB, HRA) available in the Existing Tax Regime.
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