Udaipur, December 27,2024 - India is thinking about reducing income tax for people who earn up to Rs 15 lakh a year in the upcoming budget in February. This is to help the middle class and encourage people to spend more, especially as the economy slows down.

There are two tax systems people can choose from:

1. Old system (Legacy Plan): This system allows you to reduce your tax by using exemptions like for house rent and insurance.

2. New system (introduced in 2020): This one has lower tax rates but doesn’t allow most exemptions.

Under the new system, if you earn between Rs 3 lakh and Rs 15 lakh, you will pay a tax of 5% to 20%, and if you earn more, the tax is 30%.

People can pick which system they want based on which one is more beneficial for them.

Source: Media Reports