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October 25, 2021
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New Income Tax Slab Rates in Budget 2020

New Income Tax Slab Rates in Budget 2020

Budget 2020: No Tax upto earning of 5 lakhs

The Modi government has given a big relief to the middle class by implementing a new income tax slab in the budget 2020. There will be no tax on income up to five lakh rupees. Income from 5 to 7.5 lakh will be taxed at 10%. 7.5 lakh to 10 lakh income will be taxed at 15 per cent. There will be 20% tax on income from 10 lakh to 12.5 lakh. 12.5% ​​to 15 lakhs earnings will be taxed at 25% and 15 lakhs to 30%. However, the new income tax system will be optional. Taxpayers will have the option to choose from either the old system or the new system. In the old tax rate, the option of concession is given, while the new rule does not give tax exemption.

New tax slab for the Budget 2020

No tax on income up to 5 lakhs
10% – 5-7.5 lakhs on earning
15% – 7.5 – 10 lakhs on earning
20% – 10 – 12.5 lakhs on earning
25% – 12.5 – 15 lakhs on earning
30% – On earning above 15 lakh and above

Old Tax Slab

Up to Rs 2,50,000 – Nil
2,50,001 to 5 lakhs on income – 5 percent
On income from 500001 to 10 lakh – 20 percent
More than 1000001 lakh – 30 percent

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