Union Finance Minister Nirmala Sitharaman announced that the New Income Tax Act will come into effect on April 1, with rules and tax returns forms to be notified shortly. She also announced that buyback by all shareholders will be taxed as capital gains.
The old regime keeps its familiar jumps at Rs 5 lakh, Rs 10 lakh and above. The new regime stretches the zero tax bracket to Rs 4 lakh and then rises in tight steps to thirty per cent above Rs 24 lakh. Every tweak to these steps reshapes take home pay for millions, which is why Budget morning dominates conversations from payroll teams to small businesses.