FM in a tweet said, Under the new regime, there is no income tax to be paid for annual income up to Rs 7 lakh, which effectively increases to Rs 7.27 lakh with marginal relief provisions.
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Middle class to gain from higher tax deductions likely in Budget 2021
Middle class tax payers may get a lot to cheer about the Budget proposals to be presented by Finance Minister Nirmala Sitharaman next month. Sources said that the Budget 2020-21 may take the sops announced earlier under the Atmanirbhar Bharat package to help people in their fight against the Covid-19 pandemic further, by raising the basic tax exemption limit for an individual income tax payee to Rs 5 lakh from Rs 2.50 lakh at present to enhance net disposable income in their hands.
In the interim budget of 2019, the government had proposed a rebate on all payable taxes if an individual s taxable income is upto Rs 5 lakh per annum. But it kept the basic exemption levels unchanged.