New Delhi: Presenting the Union Budget 2020-21, the Finance Minister Nirmala Sitharaman on Saturday announced changes in the income tax slabs. The tax rates have been brought down significantly.
It is expected to benefit a large chunk of people having the income up to Rs 10 lakh per annum.
Under the new slab, there is no income tax up to Rs 5 lakh whereas 10 per cent tax is there for income between Rs 5 lakh and Rs 7.5 lakh. For the same slab, the earlier tax rate was 20 per cent.
Going further, 15 per cent tax is there for the slab of Rs 7.5 lakh and Rs 10 lakh. The people belonging to this income group are also expected to benefit from this change as it was 20 per cent earlier.
20 per cent tax is there for income between Rs 10 lakh and Rs 12.5 lakh. The tax rate in this slab was 30 per cent earlier.
25 per cent tax is there for income between Rs 12.5 lakh and Rs 15 lakh whereas it is 30 per cent for income exceeding Rs 15 lakh.
However, Budget 2020 has offered the tax payers to choose between the existing income tax regime and the new regime with some conditions.