The big-ticket announcement by Finance Minister Nirmala Sitharaman regarding the income tax slab for an income up to Rs 12 lakhs brought wide cheers to the faces of the middle-class and taxpayers. By bringing down their tax liability to nil, FM Sitharaman unveiled the bonanza at a time when they least expected it. However, these changes are applicable only to the New Tax Regime.

How taxpayers will benefit

What was the earlier income limit for nil tax?
Earlier, the limit of income for nil tax payment was Rs 7 lakh. By increasing this limit to R12 lakh, around one crore assesses who were earlier required to pay tax varying from Rs 20,000 to Rs 80,000 will now pay nil tax.