Govt Cuts Income Tax Rates, Income Between ₹5-7.5 lakh To Be Taxed At 10%
Mumbai: In a huge development, Finance Minister Nirmala Sitharaman on Saturday announced a new regime of personal income tax.
Nirmala Sitharaman said, “Under the new personal income tax regime, individual taxpayers to pay tax at a reduced rate of 10 per cent for income between Rs 5 lakh and 7.5 lakh against the current rate of 20 per cent.”
“Those whose income is between 7.5 lakh to 10 lakh, they pay tax at 15 per cent as against the present 20 per cent. Those with income between Rs 10 to 12.5 lakh to pay tax at 20 per cent, down from 30 per cent,” she added.
Also Read: Budget 2020-21: Govt Announces Rs 99,300 Crores For Education Sector
https://twitter.com/ANI/status/1223514212485365760
He further said that under the new system, the tax rate on income from 12.5 lakh to 15 lakh rupees will be 25 per cent.
Also Read: Kisan Rail, Krishi UDAN For Farmers, Says Sitharaman
Sitharaman said, “To provide significant relief to individual taxpayers and simplify the tax law, a new rule of personal income tax will be introduced.”
Look After The Updates Here:
- Those earning up to Rs 5 lakh in a year will pay no tax.
- Income between Rs 5-7.5 lakh, the tax rate is 10 pc.
- Income between Rs 7.5-10 lakh, the tax rate is 15 pc.
- Income between Rs 10-12.5 lakh, tax rate cut to 20 pc from 30 pc.
- A person earning Rs 15 lakh per anum and not availing any deductions will now pay Rs 1.95 lakh tax in place of Rs 2.73 lakh.
- The new personal income tax regime entails an estimated revenue foregone amounting to Rs 40,000 crore per year.
Follow us on Twitter, Instagram and like us on Facebook for the latest updates and interesting stories.
