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Income Tax Budget 2020: New Income Tax Slabs/Rates, Check Net Savings - PDF Download

Income Tax Budget 2020 proposes crucial changes in Income Tax Rates 2020-21. Have a look at revised income tax slabs and know how much will you save in new tax regime. Know all about New Income Tax Rates, Standard Deduction, and Section 80C. PDF Download Budget 2020 document here.

Feb 1, 2020 16:24 IST
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Income Tax Budget 2020 announced by the Finance Minister Nirmala Sitharaman. The Minister proposes a new simplified income tax regime in her second Budget speech. The Union Budget 2020 proposes new income tax rates for taxpayers. Apart from this, the Budget scraps a few unneeded tax regimes such as DDT and others. Here we have shared the complete details of the Income Tax changes announced in the Budget 2020. Have a look at the detailed Income Tax Slabs and know how the new slabs will boost your savings. Below we have listed the new and old income tax amount along with net savings. The Budget highlights are also provided below in PDF Download format. 

The Budget 2020 restructures the income tax slabs and announces various taxation reforms for the welfare of taxpayers. It is focused on boosting income and enhancing the purchasing power of people. The budget proposes some effective income tax reforms and changes to accelerate the growth of the Indian Economy and bring it back to the track. Though the Government undertook several initiatives in 2019-20 to revive the economy such as corporate tax rate cut, no progress was witnessed in terms of the revival of growth rate or market slump.

It is highly expected that the Income Tax Budget 2020 would offer some key changes and reforms in the Indian Taxation System to spur investments and growth. These measures could be lessened personal income taxes, increase in basic exemption limit, a restructured tax rate structure among others. Have a look at the details of Income Tax Budget 2020-21 below:

PDF Download Union Budget 2020-21

Expenditure & Revenue: The Budget mentions the Revised Estimates of expenditure to Rs 26.99 lakh crore for 2019-20  and Revenue Receipts of Rs 19.22 lakh crore.

Direct Tax

Corporate Tax Rate reduced to 15% for new mfg companies and to 22% for existing companies, the lowest in the world.

The net market borrowings for 2020-21 are fixed at Rs 5.36 lakh crore.

New Tax Regime announced: Simplified Personal Income Tax regime proposed in the Budget 2020. Have a look at the new income tax rates:

Up to 5 lakh Income: 0%

From 5 lakh to 7.5 lakh: 10%

From 10 Lakh to 12.5 lakh: 20%

From 12.5 lakh to Rs 15 Lakh: 25%

Beyond Rs 15 Lakh: 30% (No Change)

Income tax rates will remain unchanged at 30% for people earning above Rs 15 lakh. However, people who want to follow the old Income Tax Regime with exemptions can continue to do so

Previous & Revised Income Tax Slabs

Income Slab

 Income Tax Rate 2020-21

Income Tax Rate 2019-20

Up to Rs 5 lakh

Nil

Nil

Rs 5 to Rs 7.5 lakh

10%

20%

Rs 7.5 to Rs 10 lakh

15%

20%

Rs 10 to Rs 12.5 lakh

20%

30%

Rs 12.5 lakh to Rs 15 lakh

25%

30%

Over 15 lakh (No Change)

30%

30%

Amendment of Income Tax Act: Budget amends the Income Tax Act, 1961 to introduce 'No Dispute, But Trust' scheme (Vivad se Vishwas) to bring down the number of direct tax cases or disputes. At present, over 4.5 lakh direct tax cases are pending in appellate tribunals.

Removal of Dividend Distribution Tax – Considering that the companies were required to pay 15% DDT and additional surcharge on dividend paid to shareholders which increases the tax burden for investors, the Government proposes the removal of DDT Regime.

Cess & Duty

Customs duty on footwear and furniture will be increased.

Nominal Cess will be imposed on the import of medical equipment as these are now being made in India.

Other taxation reforms announced in Union Budget 2020-21

- It extends the Concessional Tax Rate of 15% to power generating companies.

- Income tax rates will remain unchanged at 30% for people earning above Rs 15 lakh

- Cooperative Societies Tax will be reduced to 22% plus cess & surcharge from 30%

- Registration of NGOs and charity institutions will be made electronic. Donations will be pre-filled in the ITR form to claim exemptions

How much will you save under the new Income Tax Regime 2020-21?

Have a look at the total old and new income tax calculated below for all income slabs and know the total savings one can enjoy by adopting the new regime without exemtpions:

Income

(Rs)

New Rate

(2020-21)

Total Tax

(2020-21)

Old Rate

(2019-20)

Total Tax

(2019-20)

Tax Difference

Net Savings

500000

5%

12500

5%

12500

0

-9500

750,000

10%

37500

20%

62500

25000

6000

1,000,000

15%

75000

20%

112500

37500

9000

1,250,000

20%

125000

30%

187500

62500

24500

1,500,000

25%

187500

30%

262500

75000

27500

2,000,000

30%

337500

30%

412500

75000

18000

2,500,000

30%

487500

30%

562500

75000

18000

Note: These rates are personally calculated to give you a hint about the income tax calculation in 2020-21. This table will be updated soon after receiving the opinion of economic experts. 

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