Union Budget 2020: Middle Class Bumper Gift, Changed Income Tax Slab

Union Budget 2020: The Finance Minister announced that no tax will have to be paid to those earning up to 5 lakh.

 Those earning from 5 to 7.50 lakh rupees will now have to pay 10 percent tax, which till now had to pay 20 percent.



 Union Finance Minister Nirmala Sitharaman had a lot of expectations from the budget of the general taxpayers, and their bag has been filled. 

The government has increased the income tax exemption limit.  Income tax exemption has been taken care of every category.

 The Finance Minister announced that no tax will have to be paid to those earning up to 5 lakh.

 Those earning from 5 to 7.50 lakh rupees will now have to pay 10 percent tax, which till now had to pay 20 percent.

 Those whose income ranges from Rs 7.50 lakh to Rs 10 lakh will now have to pay 15 percent tax. 

Those earning from 10 to 12.50 lakh rupees will have to pay 20 percent tax, which has to pay 30 percent till now.

 Those earning from 12.50 lakh to 15 lakh rupees will have to pay 25 percent tax, which till now was up to 30 percent. 

At the same time, whose income is more than 15 lakh rupees, such people will get 30 percent tax.
New Income Tax Slab:

 0 to 5 Lakh - 0%

 5 Lakh to 7.5 Lakh -10%

 7.50 Lakh to 10 Lakh - 15%

 10 Lakh to 12.50 Lakh - 20%

 12.50 Lakh to 15 Lakh- 25%

 Income above 15 lakhs - 30 percent

 What is the tax slab now

 According to the current tax slab, 5% tax has to be paid on annual earnings of Rs 2.5-5 lakh. 

Similarly, there is a provision of 20 percent on Rs 5-10 lakh while 30 percent tax on earnings of 10 lakh and above.

 Let me tell you, while presenting the interim budget of the first term of the Modi government on February 1, 2019, then Finance Minister Piyush Goyal gave rebate on the annual earnings up to Rs 5 lakh. 

The benefit of this rebate can be availed only when you fill the return.  If there is an annual income of 5 lakhs and you do not fill the returns, then notice of Income Tax Department can come.

 To take advantage of income tax exemption, you have to declare your annual income. 

Rebate will be given as rebate on income up to 5 lakh.  Please tell here that in addition to the standard deduction, a total of 2 lakh rupees are available under Section 80C.

 Old Income Tax Slab

 Up to 2.5 Lakh - 0%

 2.5 Lakh to 5 Lakh - 5%

 5 Lakh to 10 Lakh - 20%

 Above 10 lakh - 30%