New Income Tax slab announced by Nirmala Sitharaman for individuals who forego exemptions


Finance Minister Nirmala Sitharaman on Saturday announced several major reliefs on Income Tax to individuals in her union budget for 2020. Sitharaman said that individuals earning between Rs 5 lakh and Rs 7.5 lakh will now have to pay only 10% tax as opposed to 20% that they were required to pay earlier.
Nirmala Sitharaman

Persons earning between Rs. 7.5 and 10 lakh will now pay only 15% tax as opposed to the existing 20%. The tax rate has been brought down from 30% to 20% for individuals earning between Rs 10 and 12.5 lakh.

The tax rate for those earning between Rs 12.5 lakh and Rs 15 lakh will be just 25%. “Those earning up to Rs 5 lakh shall not pay any tax either in the old regime or in the new regime,” Sitharaman added.

Individuals have been provided with the option in the current budget to choose between the existing income tax regime and a new regime with slashed income tax rates and new income tax slabs but no tax exemptions.


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