Under the relief package, individuals earning up to Rs50,000 per month have been granted a full tax exemption. The income tax for those earning Rs100,000 per month has been reduced from Rs2,500 to Rs500.
Further reductions have also been announced across various salary levels. For example, the monthly income of Rs150,000 will now be taxed at Rs6,000 instead of Rs10,000, while Rs200,000 income will be taxed at Rs13,500 instead of Rs19,167.
For higher brackets, tax on Rs225,000 monthly income has been cut to Rs19,250 from Rs25,417, while Rs250,000 income will now be taxed at Rs25,000 instead of Rs31,667.
Similarly, tax on Rs300,000 monthly income has been reduced to Rs38,833 from Rs45,833, and for Rs350,000 it has been brought down to Rs54,250 from Rs61,250.
At higher levels, Rs500,000 monthly income will now be taxed at Rs106,750 instead of Rs113,750, while Rs800,000 income will be taxed at Rs211,000 instead of Rs218,000. For Rs1 million monthly salary, the tax has been reduced from Rs317,000 to Rs307,000.
Those who are earning between Rs3.2 million and Rs4.1 million, the rate has been cut from 30 per cent to 25 per cent.
Those who are earning in the Rs4.1 million to Rs5.6 million bracket will now pay 29 per cent tax instead of 35 per cent.
In addition to this, those who are earning Rs5.6 million to Rs7 million annually. The rate has been reduced from 35 per cent to 32 per cent.
The government has also decided to abolish the surcharge imposed on the salaried class, according to the details.
