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