Budget 2020 Income Tax slabs and rates updates: Govt proposes cut in tax on cooperative societies

Finance Minister Nirmala Sitharaman on Saturday (February 1) tabled General Budget 2020-21.

New Delhi: Finance Minister Nirmala Sitharaman on Saturday (February 1) tables General Budget 2020-21. The Finance Minister introduced a new tax regime to give more money in the hands of common people. In the last year's interim budget, FM Sitharaman had announced rebate for employees with income up to Rs 5 lakh, followed by a cut in corporate tax rates in September.

"Under the new personal income tax regime, individual taxpayers to pay tax at a reduced rate of 10 per cent for income between Rs 5 lakh and 7.5 lakh against the current rate of 20 per cent," Sitharaman said while presenting the Budget."

The finance Minister said, "Those with income between Rs 7.5 lakh to 10 lakh to pay tax at 15 per cent against the current 20 per cent. Those with income between Rs 10 to 12.5 lakh to pay tax at 20 per cent, down from 30 per cent."

Sitharaman further said that tax rates for income between Rs 12.5 lakh to 15 lakh will be 25 per cent, under the new regime, adding "To provide significant relief to individual taxpayers and simplify the tax law, a new regime of personal income tax to be introduced." 

Here are the key highlights of Budget 2020 Income Tax slabs and rates.  Thanks for staying with Zee News

01 February 2020

14:15 IST

The Finance Minister announced extension of additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.

14:15 IST

Finance Minister Nirmala Sitharaman proposed reduction of tax on cooperative societies to 22 per cent plus surcharge and cess, from 30 per cent at present.

13:17 IST

-Income upto Rs 5 lakh no tax payment 
-From Rs 5 to 7.5, you need to pay 10%
-From Rs 7.5 to Rs 10 lakh, you have to pay 15% from current 20% tax payment
-From Rs 10 to Rs 12.5 lakh, you have to pay 20% rather than paying current 30%
-From Rs 12.5 lakh to Rs 15 lakh, you have to pay 25% from earlier 30%
Those who have income above Rs 15 lakh will continue to pay 30% tax

13:11 IST

The FM proposes new simplified personal income tax regime for individual taxpayers

-Income upto Rs 5 lakh no tax payment 
-From Rs 5 lakh to 7.5 lakh, you need to pay 10%
-From Rs 7.5 lakh to Rs 10 lakh, you have to pay 15% from the current 20% tax payment
-From Rs 10 lakh to Rs 12.5 lakh, you have to pay 20% rather than paying current 30%
-From Rs 12.5 lakh to Rs 15 lakh, you have to pay 25% from earlier 30%
Those who have income above Rs 15 lakh will continue to pay 30% tax

12:49 IST

The FM proposes new simplified personal income tax regime for individual taxpayers

11:43 IST

Finance Minister Nirmala Sitharaman also announced a taxpayer charter to make laws in order to remain committed and assure taxpayers against harassment.

11:14 IST

Earlier, the taxman used to issue refunds cheques in some cases but now it has been made mandatory to issue refunds only through the e-mode. Taxpayers have been asked to link their bank accounts with PAN so that the refunds can be processed.

11:02 IST

Total of 60 lakh new taxpayers have been added in the past two years: Nirmala Sitharaman.

11:00 IST

The Congress expressed hope that the Union Budget would provide relief to the salaried class through tax cuts and invest in rural India besides providing a healing touch to the common man and industry facing "hardship" since demonetisation.

10:40 IST

Income tax rate for individual taxpayers varies according to their age, as there are different tax slabs applicable. An individual, aged below 60 years, with an income less than Rs 2.5 lakh need not pay any income tax.

10:25 IST

In the Budget 2019, no changes in the income tax slabs and rates were proposed. A rebate of Rs 12,500 was made available for all taxpayers with taxable income up to Rs 5 lakh. The standard deduction for financial year 2019-20 was kept at Rs 50,000.

10:23 IST

The panel on direct taxes code (DTC) has suggested the widening of the income tax slabs. It has suggested 10 per cent tax slab should be extended up to Rs 10 lakh, which will bring a significant relief to a large chunk of taxpayers.

10:01 IST

A tweaking of tax slabs is also expected and as part of the restructuring, the Union Budget 2020 may raise the minimum exemption limit from the current Rs 2.5 lakh.

09:54 IST

Budget 2020 is expected to unveil a new amnesty scheme for resolution of legacy disputes in Income Tax as this will mop up at least Rs 2 lakh crore for the cash-starved government.

09:49 IST

As FM Sitharaman is back with traditional 'bahi khata' for Budget 2020-21, individual taxpayers are waiting with bated breath what is in store for them.