NEW DELHI: In an unprecedented announcement, Union Finance Minister Nirmala Sitharaman decided to introduce a new income tax bill from next week. From now on, there will be No Income Tax payable up to an income of Rs 12 lakh. The proposal would drain crores of revenue from the government coffers but the middle class would have more than one reason to celebrate. People earning between Rs 50,000 to Rs 1 lakh a month will get to save nearly 80,000 to Rs 1 lakh this way.

The announcement was received in high elan from the ruling party as members chanted ‘Modi Modi’ to the giant tax relief announcement made by the union finance minister. The minister also announced formulating a progressive taxation system, to further ease the burden of the middle-income group.

Revised income tax slabs:

Income up to Rs. 4,00,000: No tax

Rs. 4,00,001 to Rs. 8,00,000: 5 per cent tax

Rs. 8,00,001 to Rs. 12,00,000: 10 per cent tax

Rs. 12,00,001 to Rs. 16,00,000: 15 per cent tax

Rs. 16,00,001 to Rs. 20,00,000: 20 per cent tax

Rs. 20,00,001 to Rs. 24,00,000: 25 per cent tax