Is upto 5 lakh nil tax ?

For the financial year 2020-21, income up to £5 lakh can be tax-free, provided you meet certain conditions. This is largely due to the rebate available under Section 87A of the Income Tax Act. However, if your income exceeds £5 lakh, the rebate is not applicable, and tax will be levied on income above £2.5 lakh. The new tax regime also introduces a 5% tax rate for income between £2,50,001 and £5,00,000.