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.

<a href="https://www.wionews.com/business-economy/budget-2020-key-highlights-100-more-airports-to-be-developed-by-2024-under-udaan-scheme-278042">Also Read:&nbsp;Budget 2020 key highlights</a>

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 &amp; 12.5-15 lakh to get 5 per cent cut.&nbsp;

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.&nbsp;

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.

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 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. Also Read: Budget 2020 key highlights 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.

Budget 2020: New tax slab proposed for common man

Finance Minister Nirmala Sitharaman today looked tired while delivering the longest budget speech of &nbsp;Independent India. She couldn't read the last two pages of the Budget.

<a href="https://www.wionews.com/business-economy/budget-2020-political-reactions-govt-calls-budget-reform-oriented-opposition-terms-it-rambling-says-no-focus-on-job-creation-278002">Also read: Govt calls Budget reform-oriented; Opposition terms it rambling, says 'no focus on job creation'</a>

Finance Minister appeared uneasy and was seen wiping sweat from her forehead.

<a href="https://www.wionews.com/business-economy/25-tax-for-individuals-annually-earning-between-rs-10-lakh-and-rs-125-lakh-sitharaman-in-budget-2020-277999">Also read: 25% tax for individuals earning between Rs 10 lakh and Rs 12.5 lakh per year</a>

For immediate relief, she was offered a few candies from fellow MPs but she discontinued her speech. This was the longest Budget speech by any finance minister.

India is grappling with its worst economic slowdown in a decade, with falling employment, consumption and investment ratcheting up pressure on Prime Minister Narendra Modi to revive growth.

The government estimates economic growth this year, which ends on March 31, will slip to 5%, the weakest pace since the global financial crisis of 2008-09. It has also warned that an expected bounce back in growth the following year might entail a blow out in fiscal deficit targets.

Amid the ongoing economic slowdown, Finance Minister Nirmala Sitharaman has offered a massive relief to the salaried class with major cuts in the income tax rates. She also announced the abolition of Dividend Distribution Tax for companies.

(With inputs from agencies)

Finance Minister Nirmala Sitharaman today looked tired while delivering the longest budget speech of Independent India. She couldn't read the last two pages of the Budget.

Finance Minister Nirmala Sitharaman today looked tired while delivering the longest budget speech of Independent India. She couldn't read the last two pages of the Budget. Also read: Govt calls Budget reform-oriented; Opposition terms it rambling, says 'no focus on job creation' Finance Minister appeared uneasy and was seen wiping sweat from her forehead. Also read: 25% tax for individuals earning between Rs 10 lakh and Rs 12.5 lakh per year For immediate relief, she was offered a few candies from fellow MPs but she discontinued her speech. This was the longest Budget speech by any finance minister. India is grappling with its worst economic slowdown in a decade, with falling employment, consumption and investment ratcheting up pressure on Prime Minister Narendra Modi to revive growth. The government estimates economic growth this year, which ends on March 31, will slip to 5%, the weakest pace since the global financial crisis of 2008-09. It has also warned that an expected bounce back in growth the following year might entail a blow out in fiscal deficit targets. Amid the ongoing economic slowdown, Finance Minister Nirmala Sitharaman has offered a massive relief to the salaried class with major cuts in the income tax rates. She also announced the abolition of Dividend Distribution Tax for companies. (With inputs from agencies)

Unwell Nirmala Sitharaman cuts short longest-ever Budget speech of independent India

Finance minister Nirmala Sitharaman while presenting the Budget on Saturday introduced new slabs and reduced the tax rate for different slabs for an individual income of up to Rs 15 lakh per annum provided the taxpayer opts for foregoing exemptions.

<a href="https://www.wionews.com/business-economy/budget-2020-finance-minister-nirmala-sitharaman-proposes-withdrawal-of-customs-duty-exemption-on-raw-sugar-agro-animal-based-products-278019">Also Read:&nbsp;Sitharaman proposes withdrawal of customs duty exemption on raw sugar, agro-animal based products</a>

"Twenty per cent tax for individuals annually earning between Rs 10 lakh and Rs 12.5 lakh, 25 per cent for income between Rs 12.5 lakh and 15 lakh, 30 per cent for above Rs 15 lakh income under the new slab," Sitharaman said.

"Dividend distribution tax shifted to individuals instead of companies," India's finance minister asserted.

For individuals earning upto Rs 5 lakh in a year will pay no tax. "For income between Rs 7.5 lakh and Rs 10 lakh per annum, tax rate has been reduced to 15 per cent from 20 per cent," the minister said.

<a href="https://www.wionews.com/india-news/latest-india-news-finance-minister-nirmala-sitharaman-breaks-record-of-longest-budget-speech-278005">Also Read:&nbsp;In longest Budget speech, Sitharaman recites Kashmiri poem, couplet in Tamil</a>

"The proposal would lead to a revenue sacrifice of Rs 40,000 crore per annum," the minister added.

The minister said the new regime will be optional and the people can continue with old regime if they wanted.

The government also proposed cut in tax on cooperative societies to twenty-two per cent including surchange and cess. Sitharaman also announced extending the approval date by one year of affordable housing projects in order to avail tax holiday on profit earned by developers.

<a href="https://www.wionews.com/photos/interesting-facts-about-the-budget-277967">In Pics: Key facts about India's Budget &nbsp;</a>

"Direct taxes are the lowest, simplest and smoothest," the finance minister said.&nbsp;

The finance minister also announced the extension of additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.

In order to simplify PAN, the minister said a process would be put in place to instantly allot it through Aadhaar.

Finance minister Nirmala Sitharaman while presenting the Budget on Saturday introduced new slabs and reduced the tax rate for different slabs for an individual income of up to Rs 15 lakh per annum provided the taxpayer opts for foregoing exemptions.

Finance minister Nirmala Sitharaman while presenting the Budget on Saturday introduced new slabs and reduced the tax rate for different slabs for an individual income of up to Rs 15 lakh per annum provided the taxpayer opts for foregoing exemptions. Also Read: Sitharaman proposes withdrawal of customs duty exemption on raw sugar, agro-animal based products "Twenty per cent tax for individuals annually earning between Rs 10 lakh and Rs 12.5 lakh, 25 per cent for income between Rs 12.5 lakh and 15 lakh, 30 per cent for above Rs 15 lakh income under the new slab," Sitharaman said. "Dividend distribution tax shifted to individuals instead of companies," India's finance minister asserted. For individuals earning upto Rs 5 lakh in a year will pay no tax. "For income between Rs 7.5 lakh and Rs 10 lakh per annum, tax rate has been reduced to 15 per cent from 20 per cent," the minister said. Also Read: In longest Budget speech, Sitharaman recites Kashmiri poem, couplet in Tamil "The proposal would lead to a revenue sacrifice of Rs 40,000 crore per annum," the minister added. The minister said the new regime will be optional and the people can continue with old regime if they wanted. The government also proposed cut in tax on cooperative societies to twenty-two per cent including surchange and cess. Sitharaman also announced extending the approval date by one year of affordable housing projects in order to avail tax holiday on profit earned by developers. In Pics: Key facts about India's Budget "Direct taxes are the lowest, simplest and smoothest," the finance minister said. The finance minister also announced the extension of additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021. In order to simplify PAN, the minister said a process would be put in place to instantly allot it through Aadhaar.

Budget 2020: Sitharaman's new optional tax slabs to give choice for people to decide

Finance Minister Nirmala Sitharaman presented her second Budget in Prime Minister Narendra Modi's second term in what is considered to be the most difficult budget in a decade.&nbsp;

<a href="https://www.wionews.com/business-economy/union-budget-2020-21-live-updates-nirmala-sitharaman-union-budget-live-speech-on-union-budget-income-tax-slab-rate-cut-railway-budget-277913">Also Read:&nbsp;Union Budget 2020-21-&nbsp;News Updates</a>

The FM Presented the budget at a time when the Indian economy was facing multipronged challenges including lack of jobs and slowing consumption.&nbsp;

<a href="https://www.wionews.com/business-economy/2020-budget-updates-union-budget-2020-sitharaman-allocates-rs-99300-crore-for-education-proposes-medical-colleges-with-district-hospitals-on-ppp-model-277987">Also Read:&nbsp;Sitharaman allocates Rs 99,300 crore for education</a>

Here are the reactions of political leaders on Sitharaman's budget:&nbsp;

The budget gives an outline of new and confident India: Defence Minister Rajnath Singh

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The first Budget of the new decade presented today by Finance Minister Smt. <a href="https://twitter.com/nsitharaman?ref_src=twsrc%5Etfw">@nsitharaman</a> gives an outline of a New and Confident India. 
 
It is a promising, proactive and progressive Budget which will make India healthy and wealthy in coming years.
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Govt removes incentives to ''save'' in the nation with no social security: Trinamool Congress on Budget

The Trinamool Congress on Saturday slammed the Union Budget over the removal of tax exemptions and questioned such a move in a country with no social security. 
Finance Minister Nirmala Sitharaman introduced new slabs and reduced the tax rate for different slabs for an individual income of up to Rs 15 lakh per annum, if a taxpayer opts for foregoing exemptions and deductions.

<a href="https://www.wionews.com/business-economy/nominal-gdp-growth-for-2020-21-estimated-at-10-per-cent-says-fm-sitharaman-277995">Nominal GDP growth for 2020-21 estimated at 10 per cent, says FM Sitharaman&nbsp;</a>

The official handle of Congress party tweeted that the Budget 2020 has failed to layout a roadmap or plan on how the govt plans to address this serious issue.

<img alt="Congress" data-entity-type="file" data-entity-uuid="6ceb8870-ef0a-431d-8df4-863c188ebc78" src="//cdn.wionews.com/sites/default/files/inline-images/congress.JPG" /> 
 
Criticizing the Union Budget presented by the Finance Minister Nirmala Sitharaman, Congress leader Rahul Gandhi said that govt's hollow approach visible in Budget. The budget describes govt's mindset well - all talk, nothing concrete; a lot of repetition and rambling.&nbsp;

"Did not see any concrete, strategic idea in Budget that could help youngsters get jobs; redundant things, no central idea," said Rahul Gandhi.

Finance Minister Nirmala Sitharaman presented her second Budget in Prime Minister Narendra Modi's second term in what is considered to be the most difficult budget in a decade.

Finance Minister Nirmala Sitharaman presented her second Budget in Prime Minister Narendra Modi's second term in what is considered to be the most difficult budget in a decade. Also Read: Union Budget 2020-21- News Updates The FM Presented the budget at a time when the Indian economy was facing multipronged challenges including lack of jobs and slowing consumption. Also Read: Sitharaman allocates Rs 99,300 crore for education Here are the reactions of political leaders on Sitharaman's budget: The budget gives an outline of new and confident India: Defence Minister Rajnath Singh The first Budget of the new decade presented today by Finance Minister Smt. @nsitharaman gives an outline of a New and Confident India. It is a promising, proactive and progressive Budget which will make India healthy and wealthy in coming years. — Rajnath Singh (@rajnathsingh) February 1, 2020 × Govt removes incentives to ''save'' in the nation with no social security: Trinamool Congress on Budget The Trinamool Congress on Saturday slammed the Union Budget over the removal of tax exemptions and questioned such a move in a country with no social security. Finance Minister Nirmala Sitharaman introduced new slabs and reduced the tax rate for different slabs for an individual income of up to Rs 15 lakh per annum, if a taxpayer opts for foregoing exemptions and deductions. Nominal GDP growth for 2020-21 estimated at 10 per cent, says FM Sitharaman The official handle of Congress party tweeted that the Budget 2020 has failed to layout a roadmap or plan on how the govt plans to address this serious issue. Criticizing the Union Budget presented by the Finance Minister Nirmala Sitharaman, Congress leader Rahul Gandhi said that govt's hollow approach visible in Budget. The budget describes govt's mindset well - all talk, nothing concrete; a lot of repetition and rambling. "Did not see any concrete, strategic idea in Budget that could help youngsters get jobs; redundant things, no central idea," said Rahul Gandhi.

Budget 2020 political reactions: Govt calls Budget reform-oriented; Opposition terms it rambling, says 'no focus on job creation'

Union finance minister Nirmala Sitharaman while announcing the Budget in Parliament today announced hundred per cent tax concession to sovereign wealth funds on investment in infrastructure&nbsp;projects.

<a href="https://www.wionews.com/business-economy/union-budget-2020-21-live-updates-nirmala-sitharaman-union-budget-live-speech-on-union-budget-income-tax-slab-rate-cut-railway-budget-277913">Also Read:&nbsp;Union Budget 2020-21-&nbsp;News Updates</a>

"Fiscal deficit pegged at 3.8 per cent in current fiscal and 3.5 per cent next year," Sitharaman said during the Budge speech.

The minister also announced concessional tax rate of 15 per cent to power generation companies.

"Concessional withholding rate of 5 per cent on interest payment to non-residents extended up to June 30, 2022," the minister announced.

<a href="https://www.wionews.com/business-economy/2020-budget-updates-union-budget-2020-sitharaman-allocates-rs-99300-crore-for-education-proposes-medical-colleges-with-district-hospitals-on-ppp-model-277987">Also Read:&nbsp;Sitharaman allocates Rs 99,300 crore for education</a>

"Twenty per cent tax for individuals annually earning between Rs 10 lakh and Rs 12.5 lakh, 25 per cent for income between Rs 12.5 lakh and 15 lakh, 30 per cent for above Rs 15 lakh income under the new slab," Sitharaman said.

"Dividend distribution tax shifted to individuals instead of companies," India's finance minister asserted.

For individuals,&nbsp;those earning upto Rs 5 lakh in a year will pay no tax. "For income between Rs 7.5 lakh and Rs 10 lakh per annum, tax rate has been reduced to 15 per cent from 20 per cent," the minister said.

Sitharaman proposed 10 per cent tax for income between Rs 5 lakh and Rs 7.5 lakh per anum for those who forego deductions and exemptions.

<a href="https://www.wionews.com/business-economy/nominal-gdp-growth-for-2020-21-estimated-at-10-per-cent-says-fm-sitharaman-277995">Nominal GDP growth for 2020-21 estimated at 10 per cent, says FM Sitharaman&nbsp;</a>

"Expected tax buoyancy will take time," the minister added. "Government to sell part of its holding in LIC," she added.&nbsp;

The minister added that all flagship schemes of the government have been provided for in the Budget.

Union finance minister Nirmala Sitharaman while announcing the Budget in Parliament today announced hundred per cent tax concession to sovereign wealth funds on investment in infrastructure projects.

Union finance minister Nirmala Sitharaman while announcing the Budget in Parliament today announced hundred per cent tax concession to sovereign wealth funds on investment in infrastructure projects. Also Read: Union Budget 2020-21- News Updates "Fiscal deficit pegged at 3.8 per cent in current fiscal and 3.5 per cent next year," Sitharaman said during the Budge speech. The minister also announced concessional tax rate of 15 per cent to power generation companies. "Concessional withholding rate of 5 per cent on interest payment to non-residents extended up to June 30, 2022," the minister announced. Also Read: Sitharaman allocates Rs 99,300 crore for education "Twenty per cent tax for individuals annually earning between Rs 10 lakh and Rs 12.5 lakh, 25 per cent for income between Rs 12.5 lakh and 15 lakh, 30 per cent for above Rs 15 lakh income under the new slab," Sitharaman said. "Dividend distribution tax shifted to individuals instead of companies," India's finance minister asserted. For individuals, those earning upto Rs 5 lakh in a year will pay no tax. "For income between Rs 7.5 lakh and Rs 10 lakh per annum, tax rate has been reduced to 15 per cent from 20 per cent," the minister said. Sitharaman proposed 10 per cent tax for income between Rs 5 lakh and Rs 7.5 lakh per anum for those who forego deductions and exemptions. Nominal GDP growth for 2020-21 estimated at 10 per cent, says FM Sitharaman "Expected tax buoyancy will take time," the minister added. "Government to sell part of its holding in LIC," she added. The minister added that all flagship schemes of the government have been provided for in the Budget.

25% tax for individuals annually earning between Rs 10 lakh and Rs 12.5 lakh: Sitharaman in Budget 2020