Rebates to slabs: Budget's key changes in Income Tax regime explained

This move indicates that the old regime will slowly be wound up

Union Finance Minister Nirmala Sitharaman announced several changes to the income tax regime in her Budget speech. The changes are “meant primarily for the hardworking middle class”, she said. Here are some of the changes: Rebate under section 87A has been raised, income tax slabs have been reduced, and the highest surcharge has been cut under the new tax regime. A standard deduction has been introduced in this scheme in case taxable income is higher than Rs 15.5 lakh.

Ankit Jain, partner, Ved Jain & Associates, says: “The government is focused on simplifying taxation for individuals by promoting the new