"We have left it to the taxpayers as to how many people will shift to the new tax regime. We have left it up to the taxpayers which tax regime they want to live in, but we think that at least 50 per cent to 65-66 per cent (two-thirds) of taxpayers are likely to switch over to the new tax regime in the first year itself,"
The CBDT Chairman, citing the
Also, the government has announced five slabs in the new income tax regime.
On personal income tax, the government announced that tax for income of Rs 0-Rs 3 lakh is nil, for income above Rs 3 lakh and up to Rs 5 lakh will be taxed at 5 per cent, for income of above Rs 6 lakh and up to Rs 9 lakh will be taxed at 10 per cent and for income above Rs 12 lakh and up to Rs 15 lakh to be taxed at 20 per cent and above 15 lakh at Rs 30 per cent.
"Not only salaried, even non-salaried people who are also ordinary people, we have widened the slabs, reduced the tax slabs from 6 to 5 slab. We believe that many people will shift to this scheme," CBDT chief said.
"I assure you that this scheme will be beneficial for anyone whose income is up to Rs 7 lakh. The person who is salaried class and earns more than 7 lakh then we have given him the benefit of standard deduction of Rs 50,000, this means that if someone's total income is 7.5 lakhs, then even after getting the deduction of 50,000, his income will remain 7 lakh and he will not have to pay any tax," he explained.
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