Budget 2020: No Tax Up To Rs 5 Lakh Income, New Tax Slab Announced
Budget 2020: Only those with income up to Rs 5 lakh will have to pay Income Tax in India
Union Finance Minister Nirmala Sitharaman is currently presenting Budget 2020. While presenting the budget, Nirmala Sitharaman has just announced 2020-2021 Tax Slab and it seems to be good for common people. Yes, the FM has made an announcement that there will be no tax on income up to Rs 5 lakh.
According to 2020-2021 Tax Slab, citizens whose income is between Rs 5 lakh and Rs 7.5 lakh will have to pay 10 per cent as an Income Tax. If your income is between Rs 7.5 lakh to Rs 10 lakh, you are liable to pay 15 per cent Income Tax. If your income is between Rs 10 lakh to Rs 12.5 lakh, you will be entitled to pay 20 per cent as an Income Tax. If your income is between Rs 12.5 lakh to Rs 15 lakh, you will have to pay 25 per cent.
2020-2021 New Tax Slab Announced
- O-5 Lakhss – Nill
- 5 -7.5 lakhs from 20%to 10%
- 7.5-10 lakhs from 20% to 15%
- 10-12.5 lakhs from 30% to 20%
- 12.5-15 lakhs from 30% to 25%
Notably, Nirmala Sitharaman has not announced any reduction for those whose income is between Rs 15 lakh or above. People whose earning are more than Rs 15 lakh will continue to pay Rs 30 per cent as an income tax.
New simplified Personal Income Tax regime:
— All India Radio News (@airnewsalerts) February 1, 2020
“In this new personal income tax regime, income tax rates will be significantly reduced for the individuals who forgo certain exemptions and deductions,” Nirmala Sitharaman announced. At present, individual taxpayers pay 5 percent tax on income between Rs 2.5 and 5 lakh, 20 percent on income between Rs 5 lakh and Rs 10 lakh and 30 per cent on earnings of over Rs 10 lakh. “A person earning between Rs 5-7.5 lakhs will be required to pay tax at 10 per cent against current 20 per cent,” Sitharaman said.
“Those with income between Rs 7.5-10 lakhs to pay tax at 15 per cent against the current 20 per cent. Those with income between Rs 10-12.5 lakhs to pay tax at 20 per cent against 30 per cent,” the Union Finance Minister announced.
This is the second time Nirmala Sitharama presented Budget. Earlier, in July last year, she >introduced new surcharge rates of 25 per cent for income above Rs 2 crore and up to Rs 5 crore and 37 per cent surcharge on income above Rs 5 crore.