Union Budget 2020 highlights Photograph:( WION )
The exemptions that finance minister wants you to forgo are as many as hundred. Many have been removed while some are proposed to be rationalized
The taxpayers have something to cheer from the Budget proposals presented by Finance minister Nirmala Sitharaman. Under the newly proposed regime, taxpayers can get a significant cut on payment of income tax but the catch is to avail this cut they must forgo any deductions from their taxable income.
The taxpayers who do not wish to avail of the new scheme will have the option to continue under the existing tax regime.
Here are the highlights of the tax plan:
New tax slab proposed for common man.
Taxes halved for two income bands.
Marginal decrease for other taxpayers.
Must forgo exemptions to avail benefits.
New taxation regime to be optional.
Taxes halved for 5-7.5 lakh and 10-12.5 lakh bands.
Those earning 7.5-10 lakh & 12.5-15 lakh to get 5 per cent cut.
No deductions to be claimed under the new tax regime.
Income between 7.5 and 10 lakh will be taxed 15 per cent instead of 20 per cent.
Those earning between 10 lakh to 12.5 lakh also get to benefit the most, they will pay 20 per cent tax instead of existing 30 per cent.
Income between 12.5 to 15 lakh will be taxed 25 per cent instead of 30 per cent, income above 15 lakh remains unchanged at 30 per cent
The exemptions that finance minister wants you to forgo are as many as hundred. Many have been removed while some are proposed to be rationalized.