New Delhi, February 1: Acting Finance Minister Piyush Goyal, who presented the Interim Budget 2019, announced a major rejig in the tax slabs. Much to the delight of the middle class, the government has increased the tax exemption limit from Rs 2.5 lakh at present to Rs 5 lakh. The upward push in the exemption cap will have a cascading effect, plummeting the tax rates for the subsequent slabs as well, experts claim. The Finance Ministry has, however, not released details of the new tax slabs.

As per the new Income Tax slabs announced, a person who earns in the Rs 5 lakh bracket -- an amount equivalent to 5L or below it -- will not have to pay any amount of tax. He or she was earlier charged with Rs 13,000 as tax per year. The taxable amount for all subsequent slabs has been brought down by Rs 13,000. Budget 2019: Sops For Farmers + Tax Relief to Middle Class = Another Term For Narendra Modi?

Here's the amount of income tax you'll have to pay on earning the below mentioned salary per annum:

Income Old Tax New Tax
Rs 6 Lakh 33,800 20,800
Rs 7 Lakh 54,600 41,600
Rs 7.5 Lakh 65,000 52,000
Rs 8 Lakh 75,400 62,400
Rs 9 Lakh 96.200 83,200
Rs 10 Lakh 1,17,000 1,04,000
Rs 11 Lakh 1,48,000 1,35,200
Rs 12 Lakh 1,79,400 1,66,400

The new tax slabs, however, will be implemented from the next fiscal, as the government is barred from introducing the policy change in this Interim Budget -- presented days before the general elections.

Disclaimer: The numbers have not been released by the Finance Ministry. As per the statement issued, only the tax exemption limit has been raised, whereas, the new slabs are yet to be decided. The tax amounts listed above are based on expert inputs.

(The above story first appeared on LatestLY on Feb 01, 2019 01:47 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).