Finance Minister Nirmala Sitharaman on Saturday presented the Union Budget for 2020-21. In a major relief for individual taxpayers, a new regime of personal income tax was annnounced.
"Under the new personal income tax regime, individual taxpayers to pay tax at a reduced rate of 10 per cent for income between Rs 5 lakh and 7.5 lakh against the current rate of 20 per cent," Sitharaman said while presenting the Budget.
"Those with income between Rs 7.5 lakh to 10 lakh to pay tax at 15 per cent against the current 20 per cent. Those with income between Rs 10 to 12.5 lakh to pay tax at 20 per cent, down from 30 per cent," she added.
Following the announcement, Trinamool Congress MP, Derek O'Brien took to Twitter to criticise the move.
"Tax cut ki goli mat do," he wrote.
"Read the fine print on the so-called IT cuts. Govt removes incentives to ‘save’ in a nation where there is no social security. 70/100 tax exemptions withdrawn. Exemptions were given as incentive to save money in PPF, LIC, Health insurance etc," the TMC leader wrote.
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.
The new tax regime will be optional. The taxpayers will be given choice to either remain in the old regime with exemptions and deductions or opt for the new reduced tax rate without those exemptions, Sitharaman said in the Lok Sabha while unveiling the Budget 2020-21.
(With inputs from agencies)
