The tax rate for those earning between ₹5 lakh and ₹7.5 lakh has been lowered from 20% to 10%, and for incomes between ₹7.5 lakh and ₹10 lakh to 15% from 20%. Similarly, tax rates have been lowered from 30% to 20% for those earning between ₹10 lakh and ₹12.5 lakh, and to 25% for those with incomes from ₹12.5 lakh to ₹15 lakh.
However, tax payers can opt for new rates only if they give up almost all tax exemptions and deductions they enjoy under the current regime.
Also read: Lowest GDP since 1976 to widening fiscal deficit: Capturing Indian economy in 9 charts
The graphic looks at various scenarios of taxable income for salaried individuals and calculates the total tax payable before the proposals in Budget 2020-21 and after applying them. This is based on Ernst and Young calculations.
To try out various scenarios, download google sheet at https://bit.ly/2uTzPEi
Income tax slabs
