During Budget speech, Union Finance Minister Nirmala Sitharaman announced the new simplified personal income tax regime that will reduce the income tax.
She said, “In order to provide significant relief to the individual tax payers and to simplify the income tax law, we propose to bring a new simplify personal income tax regime where income tax rates will be reduced, who forgo certain exemptions and deductions. Under it, an individual is required to pay tax of reduced rate of 10%, who have income between Rs 5-7.5 lakhs against the current 20%. Those with income between Rs 7.5-10 lakhs can pay tax at reduced rate of 15% against the current 20%. Those with income between Rs 10-12.5 lakhs can pay tax at reduced rate of 20% against 30%.”
