Budget 2020 Income Tax New Slab rates | Happy News to income tax payers
Budget 2020 Income Tax New Slab rates | Happy News to income tax payers : Salary persons new it slab rates, Employees IT modified slab rates, Budget 2020 has proposed a new regime slashing rates and rejigging income tax slabs to reduce total tax payable by individuals. As per the new regime, 70 tax exemptions will be removed but the income between Rs 5 lakh and Rs 7.5 lakh will be taxed at 10% down from current 20%, income between Rs 7.5 lakh and Rs 10 lakh will be taxed at 15% down from current 20%, and income between Rs 10 lakh and Rs 12.5 lakh will be taxed at 20% down from current 30%. Income between Rs 12.5 lakh and Rs 15 lakh will be taxed at 25% down from current 30%. Incomes above Rs 15 lakh will continue to be taxed at 30%.
Employees IT New Slab rates | Happy News to income tax payers
Budget 2020 has offered tax payers the option to choose between the existing income tax regime and a new regime with slashed income tax rates and new income tax slabs but no tax exemptions. The new tax regime offers lower tax rates and new tax slabs and simultaneously removes tax exemptions and will result in lower tax outgo for the tax payer, according to the finance minister.
Tax slabs under new, optional regime,
Income tax slabs Simplified, optional tax rate
IT New Slab Rates FY 2020-21
Up to Rs 5 lakh No tax
Rs 5-7.5 lakh 10%
Rs 7.5-10 lakh 15%
Rs 10-12.5 lakh 20%
Rs 12.5-15 lakh 25%
Above Rs 15 lakh 30%