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Income Tax Announcements

– Those earning upto Rs 5 lakh in a year will pay no tax. – Government has proposed 10 per cent tax for income between Rs 5 lakh and Rs 7.5 lakh per anum for those who forego deductions and exemptions. – For income between Rs 7.5 lakh and Rs 10 lakh per annum, tax rate reduced to 15 pc from 20 pc. – A person earning Rs 15 lakh per anum and not availing any deductions will pay Rs 1.95 lakh tax in place of Rs 2.73 lakh now. – Income tax rates will be significantly reduced for those who forego reliefs, exemptions. – New income tax rates will be optional. – New simplified personal income tax regime. Anybody earning Rs 5- Rs 7.5 lakh to pay only 10 per cent tax. For income between Rs 7.5 lakh to Rs 10 lakh, the tax rate will be 15 per cent. No tax for those earning up to Rs 5 lakh. -70 exemptions removed, deductions with a view to further simplify tax regime. Rs 40,000 cr per annum will be revenue foregone from new income tax rates for individuals.