Budget 2020: No Tax on Income Below 5 Lakhs

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Union Finance Minister Nirmala Sitharaman announced major tax relief in the Budget 2020. People earning up to 5 lakh annually will not be required to pay any tax. A person earning between Rs 5-7.5 lakhs will have to pay at 10% against the current 20 percent. Individuals earning between Rs 7.5-10 lakhs will be paying 15 percent tax instead of the previous 20 percent, and people earning between 10-12.5 lakhs have to pay 20 percent tax.

Entities earning between 12.5-15 lakhs have to pay 25% income tax and people earning over 15 lakhs will continue to pay 30 percent income tax.
Finance Minister also announced that people, who will forego reliefs and exemptions, will be eligible for additional tax incentives under new rules.

Income tax rates will be significantly reduced for those who forego reliefs, exemptions. Recent cut in corporate tax to cause loss of substantial revenue in the short-run, economy to reap huge returns in due course,” Finance Minister stated.

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