New Delhi, Feb 01 : Finance Minister Nirmala Sitharaman has introduced a new income tax structure that will exempt incomes up to ₹12 lakh from tax, and ₹12.75 lakh for salaried taxpayers. The revised tax rates will range from 0% to 30% depending on income brackets. The budget also proposes increased TDS limits for senior citizens, changes in TDS on remittances, and tax exemptions for NSS withdrawals from August 2024.

Under the revised tax structure in the new regime, incomes up to ₹4 lakh will remain tax-free, while those earning between ₹4-8 lakh will be taxed at 5%. The next slabs include ₹8-12 lakh (10%), ₹12-16 lakh (15%), ₹16-20 lakh (20%), ₹20-24 lakh (25%), and incomes above ₹24 lakh will be taxed at 30%. Announcing these changes, Finance Minister Nirmala Sitharaman emphasized that the new structure aims to provide significant tax relief for the middle class.

In her Union Budget 2025-26 presentation, FM Sitharaman announced several tax reforms, including rationalizing tax deduction at source (TDS) rates and doubling the tax deduction limit for senior citizens to ₹1 lakh. She also proposed extending the time limit for filing updated returns from two to four years. Additionally, the TDS threshold on remittances under the Liberalized Remittance Scheme (LRS) will increase to ₹10 lakh, and the annual TDS limit on rent will rise to ₹6 lakh. Furthermore, tax on withdrawals from National Savings Scheme (NSS) accounts post-August 2024 will be exempted.For further details, visit [IANS]