Budget 2020 - Understand the full mathematics of the new tax slab
New Delhi - (Ajay Singh Rajput) - The Modi government of India has presented the second general budget of its second term. With this budget, Finance Minister Nirmala Sitharaman has announced a new income tax slab. The new income tax slab will be optional, but people are still confused about this new slab.
Finance Minister Nirmala Sitharaman announced in the budget speech that income tax of Rs 2.50 lakh is completely exempt. There is a provision of 5 per cent tax on income up to Rs 2.50-5 lakh, although in this also the government rebates, which makes it completely tax free. Those earning from 5 to 7.50 lakh rupees will now have to pay 10 percent tax. Income from 7.50 lakh to 10 lakh rupees will now be taxed at 15 percent.
Those earning between 10 and 12.50 lakh rupees will have to pay 20 percent tax. Apart from this, people with income between 12.50 lakh to 15 lakh will have to pay 25 percent tax. At the same time, whose income is more than 15 lakh rupees, such people will have to pay 30 percent tax.
According to the old tax slab, there is no income tax up to Rs 2.5 lakh. From 2.5 lakh rupees to 5 lakh rupees, there was 5 percent income tax and rebate was also available in it. An income tax of 20 percent income tax was levied on income from Rs 5 lakh to Rs 10 lakh. Apart from this, income tax of more than Rs 10 lakh had to pay 30 per cent income tax. However, taxpayers can choose one from both income tax systems.
The Finance Minister said in the budget speech that taxpayers who will not take advantage of deduction and exemption, they will only get the benefit of the new rate of income tax. In total, after leaving 70 rebates, the new tax system will benefit. Experts say that the new tax slab will eliminate the benefit of all the exemptions available to taxpayers under section 80C, 80D, 24 of income tax in the tax system.
Finance Minister Nirmala Sitharaman announced in the budget speech that income tax of Rs 2.50 lakh is completely exempt. There is a provision of 5 per cent tax on income up to Rs 2.50-5 lakh, although in this also the government rebates, which makes it completely tax free. Those earning from 5 to 7.50 lakh rupees will now have to pay 10 percent tax. Income from 7.50 lakh to 10 lakh rupees will now be taxed at 15 percent.
Those earning between 10 and 12.50 lakh rupees will have to pay 20 percent tax. Apart from this, people with income between 12.50 lakh to 15 lakh will have to pay 25 percent tax. At the same time, whose income is more than 15 lakh rupees, such people will have to pay 30 percent tax.
According to the old tax slab, there is no income tax up to Rs 2.5 lakh. From 2.5 lakh rupees to 5 lakh rupees, there was 5 percent income tax and rebate was also available in it. An income tax of 20 percent income tax was levied on income from Rs 5 lakh to Rs 10 lakh. Apart from this, income tax of more than Rs 10 lakh had to pay 30 per cent income tax. However, taxpayers can choose one from both income tax systems.
The Finance Minister said in the budget speech that taxpayers who will not take advantage of deduction and exemption, they will only get the benefit of the new rate of income tax. In total, after leaving 70 rebates, the new tax system will benefit. Experts say that the new tax slab will eliminate the benefit of all the exemptions available to taxpayers under section 80C, 80D, 24 of income tax in the tax system.
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