20% tax on those earnings Rs 10-12.5 lakh, says FM Sitharaman
Mita Basak
(Professional)
(1921 Points)
Replied 01 February 2020
20% tax on those earnings Rs 10-12.5 lakh, says FM Sitharaman
NEW INCOME TAX SLABS VS EARLIER
- 10% for income between Rs 5 lakh-7.5 lakh against 20%.
- 15% for income between Rs 7.5 lakh-10 lakh against 20%
- 20% for income between Rs 10-12.5 lakh against 30%
- 25% for income between Rs 12.5 -15 lakh against 30%
- 30% for income above Rs 15 lakh
Niyati
(Student)
(7730 Points)
Replied 01 February 2020
No exemption can be availed if below new optional tax regime is used :
Mita Basak
(Professional)
(1921 Points)
Replied 01 February 2020
The FM announced to abolish the present model of Dividend Distribution Tax. The tax shall now be charged in the hands of the recipient
Mita Basak
(Professional)
(1921 Points)
Replied 01 February 2020
To introduce a new simplified personal tax regime:
- No income tax for income up to Rs 5 lakh
- 10% income tax for those earning between Rs 5 lakh to Rs 7.5 lakh versus 20% earlier
- 15% income tax for those earning between Rs 7.5-10 lakh versus 20% earlier
- 20% income tax for those earning between Rs 10-12.5 lakh versus 30% earlier
- 25% income tax for those earning between Rs 12.5-15 lakh versus 30% earlier
- Income above Rs 15 lakh to continue to pay tax at 30%
- New income tax scheme is optional, without exemptions
- Dividend Distribution Tax (DDT) abolished, shifted to individuals instead of companies