Finance minister Nirmala Sitharaman announced a number of changes in the income tax slabs in the new tax regime. If we include all rebates, an individual will have to pay no tax on income up to Rs 7 lakh in the new tax regime. An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000 as tax in the new regime. This is only 5% of a taxpayer's income in the new regime. There is a standard deduction of Rs 52,500 in the new tax regime. The FM also said that the new tax regime would be the default regime.
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