New Tax Regime To Benefit Middle Class, Says Finance Minister

Nirmala Sitharaman said it is not necessary to induce individuals to invest through government schemes but give him an opportunity to make a personal decision

Finance Minister Nirmala Sitharaman today said the new tax regime will benefit the middle class, as it will leave more money in their hands.

Speaking to reporters after the customary post-Budget address to the central board of RBI, she said it is not necessary to induce individuals to invest through government schemes but give him an opportunity to make a personal decision regarding investments.

Under the revamped concessional tax regime, which will be effective from the next fiscal, no tax would be levied on income up to Rs 3 lakh. Income between Rs 3-6 lakh would be taxed at 5 per cent; Rs 6-9 lakh at 10 per cent, Rs 9-12 lakh at 15 per cent, Rs 12-15 lakh at 20 per cent and income of Rs 15 lakh and above will be taxed at 30 per cent.

However, no tax would be levied on annual income of up to Rs 7 lakh.