Taxpayers with income up to Rs 7.27 lakh will not have to pay income tax

This is a major relief for middle-class taxpayers, and it comes just before the July 31 deadline for filing income tax returns. Finance Minister Nirmala Sitharaman has explained how the calculation works.

Here are the key points:

• The exemption limit for income tax has been increased to Rs 7.27 lakh.

• This means that taxpayers with income up to this amount will not have to pay any income tax.

• The exemption limit has been increased by Rs 27,000, which is the amount of standard deduction that has been introduced under the new tax regime.

• The new tax regime also offers a lower tax rate for taxpayers with income above Rs 7.27 lakh.

Taxpayers who are eligible for the exemption can claim it by filing their income tax returns before the July 31 deadline.

The new tax regime is optional, so taxpayers can choose to continue with the old tax regime if they prefer.