Modi 3.0 Budget Introduces Major Tax Reforms, New Slabs and Increased Standard Deduction Announced

In the inaugural budget of Modi 3.0, Finance Minister Nirmala Sitharaman has announced substantial changes to income tax regulations, offering significant relief to taxpayers. The new tax regime includes an increase in the standard deduction from ₹50,000 to ₹75,000. The revised tax slabs are structured as follows: income up to ₹3 lakh will remain tax-free, while income between ₹3 lakh and ₹7 lakh will be taxed at 5%. For income ranging from ₹7 lakh to ₹10 lakh, the tax rate will be 10%, and income between ₹10 lakh and ₹12 lakh will be taxed at 15%. Income from ₹12 lakh to ₹15 lakh will face a 20% tax rate, and any income exceeding ₹15 lakh will be taxed at 30%. Additionally, the Income Tax Act of 1961 is set to be reviewed to simplify the tax system and reduce legal complexities, further easing the burden on taxpayers.