Income Tax slabs 2020: The Modi government on Saturday introduced new slabs for taxpayers in India, while reducing the tax rate for different slabs for people with income up to Rs 15 lakh per annum, if they opt for foregoing exemptions and deductions. This means that the taxpayers will have the option to either choose for the new regime or remain in the old regime with exemptions and deductions. The proposal would lead to a revenue sacrifice of Rs 40,000 crore per annum, she added.
How much tax will you have to pay under new regime?
– Status quo on zero to Rs 5 lakh income tax slab;
– An income taxpayer earning from Rs 5 lakh to 7.5 lakh to pay 10 per cent;
– An income taxpayer earning from Rs 7.5 lakh to Rs 10 lakh to pay 15 per cent;
– An income taxpayer earning from Rs 10 lakh to 12.5 lakh to pay 20 per cent only;
– An income taxpayer earning from Rs 12.5 lakh to Rs 15 lakh to pay 25 per cent income tax; and
– A taxpayer earning above Rs 15 lakh per annum will have to pay 30 per cent of one’s income.
Will taxpayers be benefited?
In her budget speech, finance minister Nirmala Sitharaman said that there are about 100 tax exemptions and deductions, out of which 70 are being removed in the new simplified tax regime, while the remaining will be reviewed and examined in due course. Tapati Ghose, Partner, Deloitte India said that it will be ‘interesting’ to see whether individuals will get net benefit or not.