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.