Budget 2020: New Income Tax Rates, Slabs – Here Are Key Things To Know

  • Budget 2020: Finance Minister today proposed a new income tax rate and slabs willing to forego deductions, exemptions
  • These income tax rates optional

Finance Minister Nirmala Sitharaman today proposed new income tax slabs and lower rates. These income tax rates are optional and are available to those who are willing to forego some exemptions and some deductions. The new income tax rates will be significantly reduced for those who forego reliefs, exemptions, the finance minister said.

The government will forego ₹40,000 crore per annum in revenue from new income tax rates for individuals, she said.

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Under the income tax rates, tax of only 10% will be charged to ₹5 lakh-7.5 lakh income as against prevailing 20% rate. From ₹7.5 lakh-10 lakh income, a tax rate of 15% against 20% prevailing rate. For income ₹10-12.5 lakh, a rate of 20% will be charged as against 30% earlier. For income between ₹12.5 lakh and ₹15 lakh will be taxed at 25% as against current levels of 30%. For those at ₹15 lakh plus income, tax rate will remain at 30%.

Source: livemint

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