Union Finance Minister Nirmala Sitharaman has updated the Direct Income Tax rates for the new regime. The revised rates are:

• Income up to ₹3 lakh: No tax
• Income from ₹3 lakh to ₹7 lakh: 5% tax
• Income from ₹7 lakh to ₹10 lakh: 10% tax
• Income from ₹10 lakh to ₹12 lakh: 15% tax
• Income from ₹12 lakh to ₹15 lakh: 20% tax
• Income above ₹15 lakh: 30% tax

Previously, the rates were:

• Income up to ₹3 lakh: No tax
• Income from ₹3 lakh to ₹6 lakh: 5% tax
• Income from ₹6 lakh to ₹9 lakh: 10% tax
• Income from ₹9 lakh to ₹12 lakh: 15% tax
• Income from ₹12 lakh to ₹15 lakh: 20% tax
• Income above ₹15 lakh: 30% tax

Union Finance Minister Nirmala Sitharaman presented the Budget for the seventh time and announced an increase in the Standard Deduction under the new tax regime from ₹50,000 to ₹75,000. She noted that salaried individuals could save up to ₹17,500 in tax as a result of this enhancement.

The updated Direct Income Tax rates under the new regime are:

• Income up to ₹3 lakh: No tax
• Income from ₹3 lakh to ₹7 lakh: 5% tax
• Income from ₹7 lakh to ₹10 lakh: 10% tax
• Income from ₹10 lakh to ₹12 lakh: 15% tax
• Income from ₹12 lakh to ₹15 lakh: 20% tax
• Income above ₹15 lakh: 30% tax

The rates under the old tax regime remain unchanged:

• Income up to ₹2.5 lakh: No tax
• Income from ₹2.5 lakh to ₹5 lakh: 5% tax
• Income from ₹5 lakh to ₹10 lakh: 20% tax
• Income above ₹10 lakh: 30% tax