Finance Minister Nirmala Sitharaman announced significant relief for new income tax regime subscribers. During her Budget speech, she also mentioned a comprehensive review of the Income Tax Act by the government.

Here are 10 key points from Nirmala Sitharaman’s tax announcements:

1. The government will introduce standard operating procedures for TDS defaults and simplify the compounding of such offences.

2. A comprehensive review of the customs duty structure will be conducted over the next 6 months. The TDS rate on e-commerce will be reduced to 0.1%. Two tax exemption regimes for charities will merge into one, and TDS delays will be decriminalized up to the tax filing date.

3. Over two-thirds of individuals have opted for the new income tax regime.

4. The standard deduction for those in the new regime will increase from ₹50,000 to ₹75,000.

5. Revised tax slabs under the new regime:

• ₹0-₹3 lakh: Nil
• ₹3-7 lakh: 5%
• ₹7-10 lakh: 10%
• ₹10-12 lakh: 15%
• ₹12-15 lakh: 20%
• Above ₹15 lakh: 30%

• 6. Salaried employees under the new regime will save up to ₹17,500 annually due to proposed changes.

  7. The deduction on family pension for pensioners will be enhanced from ₹15,000 to ₹25,000, benefiting 4 crore salaried individuals and pensioners.

  8. The deduction limit for the employer’s contribution to NPS will increase from 10% to 14%, and the 2% equalisation levy will be withdrawn.

  9. The monetary limit for filing tax appeals will be increased to ₹60 lakhs for ITAT, ₹2 crore for high courts, and ₹5 crore for the Supreme Court.

  10. The Angel tax will be abolished, and the corporate tax rate on foreign companies will be reduced from 40% to 35%.