In a major relief for taxpayers, Finance Minister Nirmala Sitharaman announced that under the new tax regime, income up to Rs 12 lakh (Rs 12.75 lakh with standard deductions) will be tax-free. New tax slabs have also been introduced, with rates ranging from 10% to 30% for higher income brackets. A new direct tax code will be launched next week to simplify compliance, scrap financial year confusion, and introduce a 5% tax on LIC income. The option to choose between old and new regimes will be removed, making this a historic shift in India’s tax system!
