Finance Minsiter made five major announcements at the end of her 87 minute speech. Let's have a look:
- Salaried people with income upto Rs 5 lakh do not pay any tax in both old and new tax regime. However, the rebate limit has now increased to Rs 7 lakh under new tax regime
- In 2020, the income slabs started from Rs 2.5 lakh. This time, the tax structure has changed in new regime by reducing the number of tax slabs to five and increasing the exemption limit to Rs 3 lakh
- Under new regime, each salaried person with income of Rs 15.5 lakh will get a standard deduction of Rs 52,500
- The highest applicable tax rate has reduced to 39 percent from 42.74 percent
- Lastly, there' an increase in limit in tax exemption on leave encashment to Rs 25 lakh. Earlier, it was Rs 3 lakh on retirement of non-government salaried employees was fixed last year for tax exemption.