Income tax slabs Budget 2020: Joy for taxpayers, FM announces big tax benefits - Rs 5 lakh to Rs 7.5 lakh slab to pay just 10 pct
Income tax slabs Budget 2020: In a big relief for income tax payers, Finance Minister Nirmala Sitharaman on Saturday introduced new slabs and reduced the tax rate! This applies to different slabs for an income of up to Rs 15 lakh per annum. This applies to taxpayers who choose to forego exemptions and deductions. In fact, there is a saving of as much as Rs 78,000 to be available for income taxpayers. (#BudgetOnZee)
Income tax slabs Budget 2020
The new tax regime will be optional and the taxpayers will be given the choice to either remain in the old regime with exemptions and deductions or opt for the new reduced tax rate without those exemptions, she said in the Lok Sabha while unveiling the Budget 2020-21. (Photo: Pixabay)
Income tax slabs Budget 2020
Under the proposal, people with an annual income of Rs 5 lakh to Rs 7.5 lakh will have to pay a reduced tax rate of 10 per cent; between Rs 7.5 lakh and Rs 10 lakh 15 per cent; between Rs 10 lakh and 12.5 lakh 20 per cent; between Rs 12.5 lakh and 15 lakh 25 per cent; and above Rs 15 lakh 30 per cent, she said. (Photo: PTI)
Here is the tax proposed for an earning individual - Income tax slabs Budget 2020
- Status quo on zero to Rs 5 lakh income tax slab;
- An income taxpayer earning from Rs 5 lakh to 7.5 lakh to pay 10 per cent;
- An income taxpayer earning from Rs 7.5 lakh to Rs 10 lakh to pay 15 per cent;
- An income taxpayer earning from Rs 10 lakh to 12.5 lakh to pay 20 per cent only;
- An income taxpayer earning from Rs 12.5 lakh to Rs 15 lakh to pay 25 per cent income tax; and
- A taxpayer earning above Rs 15 lakh per annum will have to pay 30 per cent of one's income.
(Photo: Pixabay)
Income tax slabs Budget 2020
The proposal would lead to a revenue sacrifice of Rs 40,000 crore per annum, she added. The minister further said that the new regime will be optional and the people can continue with old regime if they desire so. (Photo: Reuters)
Income tax slabs Budget 2020
Observing that there are about 100 tax exemptions and deductions, she said that 70 of them are being removed in the new simplified tax regime, while the remaining will be reviewed and examined in due course. (Photo: Pixabay)
Income tax slabs Budget 2020
Citing an example, FM Nirmala Sitharaman said, a person earning Rs 15 lakh per annum would be able to save Rs 78,000 in taxes by opting for the new tax regime. (Photo: IANS)