New Delhi: In the upcoming General Budget 2020-21, the government is likely to announce major tax relief by changing the income tax slab structure. The tax relief can be provided by implementing the recommendations of the Direct Tax Code Taskforce on the matters of personal income tax in the next budget.
If the government accepts the Taskforce's recommendations and implements the same, personal income taxpayers will get a big relief.
Relief in personal income tax?
1. The government is considering the recommendations of the Direct Tax Code committee
2. The DTC committee submitted a report to the government in August 2019
3. The government is considering to provide more money in hand to increase consumption
4. Some other taxes may be exempted or eliminated with a reduction in personal income tax
5. Tax exemption with discounts will enhance the government income
6. The DTC task has recommended the government to continue with rebates
The implementation of DTC Taskforce recommendations will give a big relief to taxpayers.
- If you have an annual income upto Rs 2.5 lakh, tax rate should be 0%
- If you have an annual income between Rs 2.5lakh and Rs 10 lakh, tax rate should be 10%
- If you have an annual income between Rs 10 lakh and Rs 20 lakh, tax rate should be 20%
- If you have an annual income between Rs 20 lakh and Rs 2 crore, tax rate should be 30%
- Those having an annual income above Rs 2 crore should pay 35% tax