The Finance Minister Nirmala Sitharaman has announced a reduction in the average processing time for income tax returns from 93 days to 16 days. The government also intends to roll out next-generation common IT return forms and strengthen the grievance redressal mechanism.
Additionally, Nirmala Sitharaman has increased the income rebate limit under the new tax regime from INR 11.13M to INR 15.86M.
Revised tax slabs under new tax regime
- Under new tax regime, income of INR 0 to INR 6.68M is nil.
- Income above INR 6.68M and up to 11.13M to be taxed at 5% under new regime.
- Income of above INR 13.36M and up to INR 20M to be taxed at 10% under new regime.
- Income above INR 26.7M and up to INR 33.4M to be taxed at 20% under new regime.
- Income above Rs 33.4 lakh to be taxed at Rs 30%.
