Union Budget 2020 - New Income Tax Slab introduced
Finance Minister Nirmala Sitharaman has announced New Income Tax regime for the FY 2020-2021. Under the new regime, taxpayers will pay 10%, 15%, 20% and 25% for incomes between Rs 5-7.5 lakh, Rs 7.5-10 lakh, Rs 10-12.5 lakh and Rs 12.5-15 lakh, respectively. However under new regime, which will be optional, taxpayers will have to let go of exemptions. Details of the deductions & Excemptions which are not permited in the new regime will be cleared later. Income below Rs 2.5 lakh will continue to remain exempt while income between Rs 2.5-5 lakh will continue to get a rebate. In short, for the Financial Year 2020-21, the payer can opt to continue the existing Income Tax Regime or New Tax Regime to lower the tax rate.
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Existing Tax Slab (Tax Payer can avail all deductions and Exemptions) |
New Tax Slab (Tax Payers not Permitted to avail most of the deductions and Exemptions) |
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| Up to 2.5 Lakh | - Nil | Upto 2.5 Lakh | - Nil |
| 2.5 Lakh to 5 Lakh | - 5% | 2.5 Lakh to 5 Lakh | - 5% |
| 5 Lakh to 10 Lakh | - 20% | 5 Lakh to 7.5 Lakh | - 10% |
| Above 10 Lakh | - 30% | 7.5 Lakh to 10 Lakh | - 15% |
| 10 Lakh to 12.5 Lakh | - 20% | ||
| 12.5 Lakh to 15 Lakh | - 25% | ||
| Above 15 Lakh | - 30% | ||
