Tuesday, June 22, 2021
Home News Reports Budget 2020: Here is all you need to know about new optional personal tax...

Budget 2020: Here is all you need to know about new optional personal tax regime where the govt foregoes Rs. 40,000 crores in revenue

Those who want to keep availing the deductions and exemptions can choose to pay tax at existing rates.

Nirmala Sitharaman presented her second budget as Union Finance Minister on Saturday. The provisions in the Budget for Income Taxes were expected to create ripples as it was one area where reforms were expected the most. Along with Corporate Taxes, Income Tax reforms were believed to be crucial towards ensuring a revival of the economy.

In her second budget, Nirmala Sitharaman has proposed a new tax regime for the country. It is, however, optional for the taxpayers for the country. It was announced that in the new tax regime, those earning between Rs. 5 lakh to Rs. 7.5 lakh will pay income tax at the rate of 10%. Those earning between Rs. 7.50 and 10 lakhs will pay a 15% income tax. Those between Rs. 10 lakh and 12.50 lakh will pay a 20% income tax and the same for people earning between Rs. 12.50 and 15 lakh will be 25%. For those earning above Rs. 15 lakh in a year will be taxed at 30%. These rates are entirely optional and taxpayers willing to pay income tax at this rate will have to forego deductions and exemptions. Those who want to keep availing the deductions and exemptions can choose to pay tax at existing rates.

Nirmala Sitharaman announced that the government will forego a revenue of Rs. 40,000 crores due to the new income tax rates for individuals. She also said that 70 exemptions will be removed, with a view to further simplify the tax code. “A person earning Rs 15 lakh per anum and not availing any deductions will pay Rs 1.95 lakh tax in place of Rs 2.73 lakh now,” the Finance Minister said.

Read live updates of the Budget 2020 here.

In 2019, the income tax relief provided in the interim budget were the talk of the town and it is believed that it played a great part in alleviating the middle-class disenchantment with the Modi government head of the Lok Sabha Elections. Acting Finance Minister Piyush Goyal had announced a tax rebate for individual taxpayers with annual income up to Rs. 5 lakhs. It meant that individual taxpayers up to a gross income of ₹6.5 lakhs need not pay any income tax if they made investments in provident fund and prescribed equities. Around 3 crore middle-class taxpayers benefited from the tax exemption due to this measure.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

The MVA report card: Maharashtra government’s handling of the Covid-19 pandemic

10-min read: As the Maha Vikas Aghadi struggles to keep itself afloat, here's a snapshot on the Maharashtra government's handling of the pandemic.

Congress Toolkit team now comes up with a ‘white paper’ on COVID management, here is how it is flawed

Congress has released a white paper cautioning on the third wave of COVID-19, which appears as an extension of the toolkit that was exposed last month

86 lakh vaccinations: Why BJP had the most perfect day yesterday

Rahul Gandhi has done the BJP a favour, as usual when it comes to criticising the recordbreaking number of COVID vaccination.

More controversial TISS papers surface: ‘India controlled Kashmir’, ‘Military Occupation’, romance with a research subject and embracing Islam

The 'pro-Azaadi' paper was authored by one Sreyasi Mukherjee and submitted at the Guwahati campus of TISS.

They tortured me physically, mentally, abused my religion and my God: Read how women in Mamata Banerjee’s West Bengal are being victimised

Ground report by Organiser reveals the horrifying stories of sexual assault on women in the post-poll violence in West Bengal

NCW takes cognisance of OpIndia’s report on Loyola College ex lecturer’s struggle against sexual predators, asks Chairman Provincial to take action

NCW has taken cognisance of OpIndia's report about the 13-year long battle of an ex-lecturer of Loyola College against sexual harassment

Recently Popular

How Venkatesh Prasad is winning hearts with his ‘Sanghi’ posts, one tweet at a time

Venkatesh Prasad demonstrated the Surya Namaskar for his followers, performed in deference to the Sun God.

Ravish Kumar appears massively frustrated as India administers 85 lakh COVID vaccines in single day, this is why he does not make sense

Ravish Kumar goes on a ranting spree to hate on PM Modi by camouflaging propaganda as 'criticism' over COVID-19 vaccination

Jharkhand CM Hemant Soren fails to meet Rahul Gandhi and Sonia Gandhi despite 4-days wait: Details

The Dialy Pioneer has cited quoting sources that the JMM chief is not happy over Rahul and Sonia ignoring him and instead meeting TN CM Stalin.

Republic TV issues statement over Arnab Goswami’s disappearance from the news network: Here is what they said

Arnab Goswami was last seen on May 2 during a discussion on West Bengal assembly polls. He will make a return on Monday.

Fact Check: Is “Raam” with the photo of Lord Ram printed on it is the world’s most expensive currency

As Raam is not a legal tender issued by a sovereign state or a central bank, it is not a regular currency, it is actually a bearer bond
- Advertisement -


Connect with us