New Delhi: Personal Income Tax Rates Reduced! We propose to bring a personal income tax regime, where income tax rates will be reduced, so now a person earning between Rs 5-7.5 lakhs will pay tax at 10% against current 20% says FM Nirmala Sitharaman.
Those earning up to Rs 5 lakh in a year will pay no tax says FM Nirmala Sitharaman.
A person earning Rs 15 lakh per anum and not availing any deductions will now pay Rs 1.95 lakh tax in place of Rs 2.73 lakh: FM. The new personal income tax regime entails an estimated revenue foregone amounting to 40,000 crore rupees per year.
Tax rate of 30% on income above Rs 15 lakh will be continued: FM. Around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify tax system and lower tax rates.