The Prime Minister Narendra Modi-led government is all set to bring big relief for income tax payers in the upcoming Union Budget 2020. Reports said that the governmnet will propose to revise the personal income tax slabs. According to reports, the personal income tax slab for people earning upto Rs. 7 Lakh will be revised to 5 per cent.
Taxpayers as of now are paying the same percentage of direct tax on earning up to Rs 5 lakh.
Here are the major proposals on Income tax that the government is likely to bring this Budget.
- 5 per cent tax slab for income upto 7 lakhs.
- 10 per cent tax for income upto 7-10 lakh.
The new structure would be similar to tax rates proposed by Finance Minister Nirmala Sitharaman late last year where the government had given relief to taxpayers whose annual income was less than Rs 5 lakh. The government had also announced zero liability if taxable income did not exceed Rs 5 lakh.
At present while individual income upto Rs 2.5 lakh per annum is exempt from tax, a 5 per cent tax is levied for income between Rs 2.5 lakh and Rs 5 lakh. A higher 20 per cent slab is for income between Rs 5 lakh and 10 lakh while a 30 per tax rate is applicable for income above Rs 10 lakh. In addition, the government also levies a surcharge in slabs on super rich for income above Rs 50 lakh.