1. No change in Tax slabs. However, some stupid people who don't know the difference between tax slabs and tax rebates are celebrating assuming that that the tax rebate for those with income under 5 lac is applicable to everyone. Tax rebates are selective and covered under u/s 87A. Previously, rebate for those under 5 lac was Rs 2500.
2. Standard Deduction increased from Rs 40,000 to 50,000.
3. Exemption limit on Savings schemes like FD and postal savings schemes under 80TTA increased from Rs 10,000 to 40,000.
So, Max possible tax saving for those 20% bracket is 8000 and 30% bracket is 12000 respectively compared to last year.
For those with income less than 5 lac, max possible saving due to 100% rebate is Rs 8000 (assuming they don't have any other deductions other than standard deduction.
2. Standard Deduction increased from Rs 40,000 to 50,000.
3. Exemption limit on Savings schemes like FD and postal savings schemes under 80TTA increased from Rs 10,000 to 40,000.
So, Max possible tax saving for those 20% bracket is 8000 and 30% bracket is 12000 respectively compared to last year.
For those with income less than 5 lac, max possible saving due to 100% rebate is Rs 8000 (assuming they don't have any other deductions other than standard deduction.