No Income Tax Up to ₹12 Lakh? Online Debate Sparks Questions and Confusion

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Finance Minister Nirmala Sitharaman announced revised income tax slabs aimed at easing the financial burden on taxpayers. Under the new tax regime, individuals earning up to ₹12 lakh annually will have no tax liability, except on special income categories. For salaried individuals, the exemption extends up to ₹12.75 lakh, factoring in the ₹75,000 standard deduction. These changes will take effect in the next financial year and are expected to benefit middle-class taxpayers significantly.

Following the announcement, social media users responded with a mix of appreciation and confusion, with many sharing memes and seeking clarity on how much they would save. Some users simplified the changes, explaining that while income up to ₹12 lakh will be taxed as per the revised slabs, the total tax amount will be offset through rebates under Section 87A. However, for those earning above ₹12 lakh, the rebate will not apply, and taxes will be calculated based on the slab rates.

Experts have welcomed the move, calling it a step in the right direction to boost disposable income and stimulate economic growth. Vimal Nadar, Head of Research at Colliers India, noted that the revised tax structure would provide more financial flexibility to the middle class, potentially boosting consumption in key sectors like real estate. Nitin Baijal, Executive Director at Deloitte India, emphasized that the tax exemption up to ₹12 lakh would lead to substantial savings for taxpayers, ultimately driving economic expansion.

Income Tax India addressed common queries through an FAQ on X, while business leaders like CRED Founder Kunal Shah highlighted the potential surge in spending among Gen Z consumers. The new tax regime is expected to provide a tax benefit of ₹80,000 for those earning ₹12 lakh, effectively eliminating their tax liability.

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