Under the new regime, an individual will have to pay 10 percent tax for income between Rs 5 to 7.5 lakh, down from the previous 20 percent. 15 per cent tax for 7.5 lakh to Rs 10 lakh income. 25% tax for income between 12.5 lakh to 15 lakh and 30% tax for income above 15 lakh,’ FM Sitharaman announced in the Budget presentation today. No tax for people earning up to Rs 5 lakh. The new income tax slabs are optional. You can choose to stick to the current income tax slabs or switch to the new ones, without benefit of deductions
Following are the new income tax:
# No tax for income below Rs 5 lakh
# 10% tax for income between Rs 5 lakh to Rs 7.5 lakh
# 15% tax for income between Rs 7.5 lakh to Rs 10 lakh
# 20% tax for income between Rs 10 lakh to Rs 12.5 lakh
# 25% tax for income between Rs 12.5 lakh to Rs 15 lakh
# 30% tax for income above Rs 15 lakh
Dividend distribution abolished
Dividend distribution tax abolished, says FM. Companies will no longer be required to pay DDT. A total of Rs 25,000 crore is revenue foregone due to DDT abolition, says FM. This will make India an attractive investment destination.
Tax exemption of affordable housing increased by a year
Date of approval of affordable housing projects for availing tax holiday on profit earned by developers extended by 1 yr
Govt proposes 100% tax concession to sovereign wealth funds
FM says have removed 70 exemptions, deductions with a view to further simplify tax regime. Concessional tax rate of 15 pc extended to power generation companies. Govt 100 pc tax concession to sovereign wealth funds on investment in infra projects
Govt announces ‘Vivaadh sey Vishwas scheme’ to reduce tax litigation
Under new Vivaad se Vishwaas scheme, the taxpayer would be only required to pay disputed tax amount and gets complete exemption from interest and penalty by paying it by March 31, 2020. 4.83 lakh direct tax cases are pending.
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