As per the new income tax regime, people earning up to ₹12 lakh annually will receive ₹80,000 as tax benefits, thereby making their effective income tax rate 0%. Meanwhile, those earning an annual salary of ₹16 lakh and ₹18 lakh will have an effective income tax of 7.5% with ₹50,000 tax benefit and 8.8% with ₹70,000 tax benefit, respectively.