Income tax slab revised Latest News: Ushering in a new income tax regime, Union Finance Minister Nirmala Sitharaman announced cuts on Saturday as she presented Union Budget 2020. Sitharaman introduced new slabs and reduced the tax rate for different slabs for an individual income of up to Rs 15 lakh per annum. But there's a twist. Read on.
USHERING IN A NEW TAX REGIME: WHAT CHANGES
- There will be no income tax for incomes up to Rs 5 lakh per year.
- For incomes between Rs 5 lakh and Rs 7.5 lakh per year, the income tax to be paid will be 10 per cent.
- For incomes between Rs 7.5 lakh and Rs 10 lakh per year, the income tax to be paid will be 15 per cent.
- For incomes between Rs 10 lakh and Rs 12.5 lakh per year, the income tax to be paid will be 20 per cent.
- For incomes between Rs 12.5 lakh and Rs 15 lakh per year, the income tax to be paid will be 25 per cent.
- For incomes above Rs 15 lakh per year, the income tax to be paid will be 30 per cent.
BUDGET 2020: THE TWIST
The new tax regime brought in by Nirmala Sitharaman would be optional. Taxpayers will have a choice to either remain in the old regime with exemptions and deductions or opt for the new reduced tax rate without those exemptions.
Budget 2020: REVISED TAX SLAB RATES
|
Income Tax Slab
|
Old
|
Revised tax slab
|
|
Upto Rs 5 lakhs
|
NA
|
NA
|
|
From Rs 5 to Rs 7.5 lakh
|
20%
|
10%
|
|
From Rs 7.5 to Rs 10 lakh
|
20%
|
15%
|
|
From Rs 10 to Rs 12.5 lakh
|
30%
|
20%
|
|
From Rs 12.5 lakh to Rs 15 lakh
|
30%
|
25%
|
|
Above 15 lakh
|
30%
|
30%
|
A CLEAR PICTURE OF REVISED INCOME TAX SLABS
A clear picture of revised income tax slabs A clear picture of revised income tax slabs
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