Finance Minister Nirmala Sitharaman today slashed the personal income tax rate for individuals for fiscal year 2020-21. Under the new regime, taxpayers will pay 10%, 15%, 20% and 25% for incomes between Rs 5-7.5 lakh, Rs 7.5-10 lakh, Rs 10-12.5 lakh and Rs 12.5-15 lakh, respectively. However, to avail this scheme, which is optional, taxpayers will have to let go of exemptions. Previously, taxpayers paid 20% for incomes between Rs 5-10 lakh and 30% for incomes between Rs 10-15 lakh. Income below Rs 2.5 lakh will continue to remain exempt while income between Rs 2.5-5 lakh will continue to get a rebate.

Finance Minister Nirmala Sitharaman today slashed the personal income tax rate for individuals for fiscal year 2020-21. Under the new regime, taxpayers will pay 10%, 15%, 20% and 25% for incomes between Rs 5-7.5 lakh, Rs 7.5-10 lakh, Rs 10-12.5 lakh and Rs 12.5-15 lakh, respectively. However, to avail this scheme, which is optional, taxpayers will have to let go of exemptions. Previously, taxpayers paid 20% for incomes between Rs 5-10 lakh and 30% for incomes between Rs 10-15 lakh. Income below Rs 2.5 lakh will continue to remain exempt while income between Rs 2.5-5 lakh will continue to get a rebate.