India, Feb. 4 -- The announcement of the new income tax regime in the recent budget brought a wave of joy to the middle class. The government announced zero tax for salaried individuals earning up to INR 12.75 lakhs. The new income tax regime has increased the tax-free threshold from INR 7 lakh to INR 12 lakh under the new tax regime.

What is more exciting is that salaried individuals earning up to INR 12.75 lakh annually will also not have to pay any income tax, there will only be a standard deduction of INR 75,000 from their salary.

Annual Income

Tax rates

0 - 4 lakh

Nil

4 - 8 lakh

5%

8 - 12 lakh

10%

12 - 16 lakh

15%

16 - 20 lakh

20%

20 - 24 lakh

25%

Above 24 lakh

30%

Even if an individual withdraws a salary above INR ...