Budget cuts personal income tax, raises customs duty

New Delhi: Finance Minister Nirmala Sitharaman on Saturday announced cuts in personal income tax, extended tax benefits for affordable ho...

New Delhi: Finance Minister Nirmala Sitharaman on Saturday announced cuts in personal income tax, extended tax benefits for affordable housing and gave relief to companies on payment of dividend in the Union Budget for 2020-21 as the government looked to boost consumption to bring the economy out of the worst slowdown in 11 years

The minister proposed raising customs duty on a variety of products ranging from tableware and kitchenware, electrical appliances to footwear, furniture, stationery and toys to give a level playing field to domestic companies and boost Make in India

Offering an optional lower rate of income tax to individuals, Sitharaman in her Budget for 2020-21 proposed new tax slabs of 15 per cent and 25 per cent in addition to the existing 10 per cent, 20 per cent and 30 per cent. The new I-T slabs would be for individuals not availing certain specified deductions or exemptions

Under the proposed I-T slab, annual income upto Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax

Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent

Those earning between Rs 10 and 12.5 lakh will pay tax at the rate of 20 per cent, while those between Rs 12.5 and Rs 15 lakh will pay at the rate of 25 per cent. Income above Rs 15 lakh will be taxed at 30 per cent

Individuals opting for taxation under new rates will not be entitled to exemption/deductions including under Section 80C and 80D, LTC, housing rent allowance, deduction for entertainment allowance, professional tax, and interest on self occupied/vacant property

Currently, annual income upto Rs 2.5 lakh is exempt from I-T. While a 5 per cent tax is charged for income between Rs 2.5 and 5 lakh. 20 per cent for income between Rs 5 lakh and Rs 10 lakh and 30 per cent for those earning above Rs 10 lakh

"The new tax regime shall be optional for tax payers," she said

"The proposed tax structure will provide significant relief to taxpayers and more so to those in the middle class," Sitharaman added

To boost growth, Sitharaman announced higher spendings on infrastructure, rural development and agri sector

The Finance Minister said the government is proposing a 16-point action plan to boost agriculture and farmers welfare

Agricultural services need copious investments, she said, adding government has insured 6.11 crore farmers under the Pradhan Mantri Fasal Bima Yojna

With her post 2019-20 Budget corporate tax cut drilling a Rs 1.45 lakh crore hole in government revenues, the minister hiked the fiscal deficit target for current fiscal to 3.8 per cent of GDP, from 3.3 per cent.

-Source: News Agency

COMMENTS


*

Name

AROUND THE GLOBE,4792,business,74,BY READERS,479,FEATURE,289,GLOBE,16,KERALA,13,Movie,327,s,1,SPECIAL STORY,394,TAMILNADU,4,TOP STORY,5511,TRAVEL,8,
ltr
item
Local Glob: Budget cuts personal income tax, raises customs duty
Budget cuts personal income tax, raises customs duty
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilarLskY6Ey66AZVrHPxg9UiHDyZqSQ0wEn7c_9-cL-Fs68ZykjgZVkEsYOzb2maojaPCjEKtWgprNGYUoyqGcu3p8ko026nT9tcyEg5EeXziapspHW6TSYwQrFaUIbkfq1gjt0Sc-AxE/s320/nirmala+seetharaman_localglob.png
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilarLskY6Ey66AZVrHPxg9UiHDyZqSQ0wEn7c_9-cL-Fs68ZykjgZVkEsYOzb2maojaPCjEKtWgprNGYUoyqGcu3p8ko026nT9tcyEg5EeXziapspHW6TSYwQrFaUIbkfq1gjt0Sc-AxE/s72-c/nirmala+seetharaman_localglob.png
Local Glob
http://www.localglob.com/2020/02/budget-cuts-personal-income-tax-raises.html
http://www.localglob.com/
http://www.localglob.com/
http://www.localglob.com/2020/02/budget-cuts-personal-income-tax-raises.html
true
8255692317570297677
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy