Budget 2020: FM Nirmala Sitharaman Cuts Income Tax rates, no tax upto Rs 5 lakh

Budget 2020
Honorable President Ram Nath Kovind with FM Nirmala Sitharam and Mos Anurag Thakur (Image Source: Twitter)
On Saturday in Lok Sabha Finance minister Nirmala Sitharaman prested the Union Budget for 2020-21 in which one of the most important highlights is removable of 70 tax exemptions and reduction in personal income tax with introducing new income tax slabs in the session.

According to new income tax slabs 2020-21, there is no tax upto Rs 5 lakh annual income and other tax slabs are reduced in which 10% tax on Rs 5-7.5 Lakh income, 15% tax on Rs 7.5 to 10 lakh income,20% tax on Rs 10-12.5 Lakh income, 25%  tax on Rs 12.5-15 lakh income and last 30% above Rs 15 Lakh income.

New Income Tax Slab 

  • Rs 5 Lakh: No Tax 
  • Rs 5 to 7.5 Lakh: 10% 
  • Rs 7.5 to 10 Lakh: 15% tax
  • Rs 10 to 12.5 Lakh: 20% tax
  • Rs 12.5 Lakh to 15 Lakh: 25% tax
  • Rs 15 Lakh: 30%  tax

Finance minister Nirmala Sitharaman says "The proposed tax structure will provide significant relief to the taxpayer and more so to those middle class and are optional for taxpayers" in the Budget Session 2020-21.

The new income tax slab and rates will come in effect from the financial year 2020-21.

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