On 1st February 2020, our FM Mrs. Nirmala Sitharaman, had presented the new budget cutting down income tax rates payable by individuals. Again a smart move by the brilliant FM meant for bringing relief to the salaried population and 40 million middle-class individuals.

Given below are 9-best highlights of the latest – Budget 2020:

  • New Income tax rates for individuals with earnings from Rs. 2.5 Lakh to Rs. 15 Lakh a year

Income tax rates for people falling under the income bracket of Rs. 2.5 Lakh and Rs. 5 Lakh increased to 5%.

Income tax rates for people falling under income bracket of Rs. 5 Lakh and Rs. 7.5 Lakh reduced to 10% (Old tax rates were 20%).

Income tax rates for people falling under income bracket of Rs. 7.5 Lakh and Rs. 10 Lakh reduced to 15%.

Income tax rates for people falling under income bracket of Rs. 10 Lakh and Rs. 12.5 Lakh reduced to 20%.

Also, income tax rates for people falling under income bracket of Rs. 12.5 Lakh and Rs. 15 Lakh got reduced to 25%.

  • New Tax Regime to benefit new job starters, entrepreneurs and pensioners
  • Abolished dividend distribution tax for companies benefiting the investors
  • Cover of Rs. 5 Lakh in health insurance ahead of Ayushman Bharat Scheme
  • Deducted 70 exemptions off personal Income Taxes
  • Old Audit Threshold of Rs. 1 Cr. Increased to Rs. 5 Cr. For MSME sector
  • Rs. 3000 Cr. Proposed ahead of Skill India Scheme
  • Additional Rs. 69k Cr. for the Health sector
  • Government to promote ‘Study in India’ move by 2021

These are some of the major highlights of the latest Union Budget 2020 proposed at the parliament, Delhi.

Disclaimer: All the views, opinions and information expressed in this write-up are of the authors and their respective web sources and in no way or the other reflect the views, objectives or principles of Pocket HRMS.

Source: livemint, ThePrint, Business Standard, & The Economic Times (wealth)

Share this post