Finance Minister Nirmala Sitharaman on Saturday presented the Union Budget and announced big relief to taxpayers by slashing income tax rate cut but with conditions.
Under the new, optional regime, those with a taxable income between Rs 5 lakh and Rs 7.5 lakh will pay 10% tax, against the present 20%. The new tax regime is optional for those willing to forego all exemptions.
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Here are the key takeaways:
- Big relief to taxpayers; income tax rates slashed Tax Rates
- Here are the new tax rates
- 0 to Rs 5 lakh (No tax)
- Rs 5 lakh to Rs 7.5 lakh (10% tax)
- Rs 7.5 lakh to Rs 10 lakh (15% tax)
- Rs 10 lakh to Rs 12.5 lakh (20% tax)
- Rs 12.5 lakh to Rs 15 lakh (25% tax)
- Rs 15 lakh and greater (30% tax)
- To boost startups, proposal to ease the tax burden on ESOP’s to employees by deferring tax payment by five years.
- Dividend Distribution Tax (DDT) to be removed, companies will not be required to pay DDT.
- Govt proposes to sell a part of its holding in LIC via initial public offer.
- 100 airports to be developed by 2024 to support govt’s ‘Udaan’ scheme
- IND-SAT exam to benchmark foreign candidates who wish to study in India
- Delhi-Mumbai expressway and two other projects to be completed by 2023.
- Govt has allocated ₹4,400 crores for states that work towards clean air.
- Policy to enable the private sector to build Data Centre Parks throughout the country