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.
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.
Finance Minister #NirmalaSithraman announces major tax relief for individuals
➡️Income between Rs. 5-7.5 lakh – Tax rate 10%
➡️Income between Rs. 7.5-10 lakh – Tax rate 15%
— PIB India (@PIB_India) February 1, 2020
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.