New Delhi : In the budget session, Finance Minister Nirmala Sitharaman on Saturday gave a major relief for individual taxpayers.
“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,” she 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, “she added.
She further said that tax rates for income between Rs 12.5 lakh to 15 lakh will be 25 per cent, under the new regime.
“To provide significant relief to individual taxpayers and simplify the tax law, a new regime of personal income tax to be introduced,” Sitharaman said.
A person earning Rs 15 lakh per annum and not availing any deductions will now pay Rs 1.95 lakh tax in place of Rs 2.73 lakh.
The new personal income tax regime entails an estimated revenue foregone amounting to Rs 40,000 crore per year.
