FINANCE MINISTER ANNOUNCES

MAJOR RELIEF FOR TAXPAYERS.

Anvesha Khillar
Saturday, February 1, 2020

NEW DELHI:
In the Union Budget
presented today,
Finance Minister
Nirmala Sitharaman
announced a new
revamped income tax
slab with significant
relief for individuals
earning up to Rs15 lakh
per annum, making it
optional for taxpayers
who will then have to NO INCOME TAX FOR INCOME UPTO 5
let go of 70 exemptions.
LAKHS.
"This will be depending
on the exemptions and
deductions being INCOME TAX SIMPLIFIED OLD TAX RATES
availed under the old SLABS OPTIONAL
regime. The new TAX RATES
personal income tax
regime is optional for Up to Rs 5 lakh No tax 5%
taxpayers," Sitharaman
said. Rs5-7.5 lakh 10% 20%
According to the new Rs7.5-10 lakh 15% 20%
simplified personal
income tax regime, Rs10-12.5 lakh 20% 30%
individual taxpayers
will pay tax at reduced Rs12.5-15 lakh 25% 30%
rate of 10% for income
between Rs 5 lakh and Above Rs 15 30% 30%
Rs 7.5 lakh. For income lakh
between Rs 7.5 lakh The Finance Minister added that those who
and Rs 10 lakhs, tax want to continue to avail the exemptions
rate will now be 15% can continue to pay tax at the old. She
against the current 20%. added that ₹40,000 crore per annum will be
For income between Rs revenue foregone from new income tax
10 lakh and Rs 12.5 rates for individuals.
lakh, the new tax rate
will be 20%, down from Budget will revive economic growth and
30% now. Rs 12.5 lakh create new job opportunities: Rajnath Singh
- Rs 15 lakh - tax will
be 25%. Income above
Rs 15 lakh will
continue to be taxed at HIGHLIGHTS
30%.
• Taxpayers have the option to
Under the new choose between the existing
simplified income tax income tax regime and a new
regime an individual regime.
earning between rs.5.75
• New income tax scheme is
lakh will be required to optional, without exemptions.
pay tax at 10% as
against the current 20%. • Which tax regime would be
However, these reduced beneficial, i.e., result in lower
tax rates can only be tax payable for each individual
availed by those who do is likely to depend on his/her
not avail relief for income composition and
investments. investments done?