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1. Reduced tax for lower slab:

The tax rate for income between Rs 2.5 lakh to Rs 5 lakh was reduced to 5% from 10%. This means that for an annual income of Rs 5 lakh, you now pay Rs 12,500 as income tax, because income up to Rs 2.5 lakh is tax-free, and the 5% rate is for income from Rs 250,000 to Rs 500,000.
Income tax rate on annual income from Rs 5 lakh to Rs 10 lakh is at 20%, for income more than Rs 10,00,000 is at 30%.

Ready reckoner: Income Tax rates as they exist today

Yahoo India Finance Team
Yahoo! India Finance

Finance Minister Arun Jaitley had announced several changes related to personal Income Tax in the last Budget in 2017. Reports suggest that he is likely to announce a few more changes in the upcoming 2018-19 Budget, too.

To put things in perspective, here’s a look at income tax rates and exemptions as they exist today:

(Image Credits: Getty Images)

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