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Income Tax Slab 2020: Rates CHANGED by Nirmala Sitharaman in Budget 2020; Check out impact on your earnings
New Income Tax Slab 2020-2021: The Budget 2020 session is currently going on and Finance Minister Nirmala Sitharaman announced a slash in Income Tax rates for 2020. Check out the new rates and how they will impact your earnings.
Income Tax Slab 2020-2021: Budget 2020 session is going in the Parliament and Finance Minister Nirmala Sitharaman has been making announcements pertaining to the financial plan for the coming year 2020-2021. The most important announcement every year is the one pertaining to the Income Tax rates against the slab of earnings of an individual. As per latest update, Nirmala Sitharaman has changed Income Tax rates in 2020 for different income groups. Taxpayers will now be able to avail lower income tax rates, if they let of exemptions and deductions.
The new tax regime will be an option to individuals who want to give up on their exemptions and deductions. In the pre-election budget back in 2019, Nirmala Sitharaman had announced rebate wherein anyone with an income below Rs 5 Lakhs would be given a rebate on tax paid and pay no tax. The same will continue to hold for those with income below Rs 5 Lakh and those above it will have the option to follow the new Income Tax rates.
Check out the new Income Tax Rates as per different slabs:
- 10% for income of individuals between Rs 5 lakh-7.5 lakh against 20%.
- 15% for income of individuals between Rs 7.5 lakh-10 lakh against 20%
- 20% for income of individuals between Rs 10-12.5 lakh against 30%
- 25% for income of individuals between Rs 12.5 -15 lakh against 30%
- 30% for income of individuals above Rs 15 lakh
The finance minister also mentioned that all the new rates of Income Tax would be applicable to individuals after they give up all deductions and exemptions. Also, she mentioned that in Budget 2020, they have tried to do away with 70 percent of the deductions. She mentioned that this is done to make the tax regime much easier for people and that they don't need to seek professional help for the same.
