These are the new tax scales
- 10%: Income Rs 5 lakh to Rs 7.5 lakh
- 15%: Rs 7.5 lakh to Rs 10 lakh
- 20%: Rs 10 lakh to Rs 12.5 lakh
- 25%: Rs 12.5 lakh to Rs 15 lakh
- 30%: Above Rs 15 lakh
No tax for income up to Rs 5 lakh
Finance Minister Sitharaman has published new income tax rates. Those receiving Rs 5-7.5 lakh will now pay just 15 per cent, while those earning up to Rs 5 lakh in a year will pay no tax. Income tax rates will be significantly decreased for those who forego breaks, releases, says the FM.
For earnings between Rs 7.5 lakh and Rs 10 lakh per annum, the tax rate decreased to 15 per cent from 20 per cent. A person getting Rs 15 lakh per anum and not availing any deductions will pay Rs 1.95 lakh tax in place of Rs 2.73 lakh now, says the FM. The government will forego Rs 40,000 crore per annum income from new income tax rates for people, says the FM.