Budget 2020 |
Taxpayer opting for new tax regime to forego deductions on PF, children’s
tuition fee, insurance
Since
the demand for some relief from the middle class Tax payers were very
obvious, a new personal income tax regime with reduced rates for those
earning upto Rs 15 lakh was introduced in the Budget.
Rs
5 lakh to Rs 7. 5 lakh has been lowered from 20% to 10%, and for incomes
between Rs 7.5 lakh to Rs 10 lakh to 15% from 20%. Similarly, tax rates have
been lowered from 30% to 20% for those earning between Rs10 lakh to Rs12.5
lakh, and to 25% for those with incomes from Rs12.5 lakh to Rs15 lakh.
Tax
payers can, however, can opt for the new rates, if they give up almost all tax
exemptions and deductions they enjoy under the old regime.
The
budget speech has not mentioned regarding taking steps to overcome the
financial crisis, moreover, it has indication on sales of profit making public
sector undertakings like LIC of India, IDBI etc. The expectations of the stock
market had a hit . Hope the agri sector may improve but most of the
proclamations were there last year also. Whether MSME thrive or not, we will
wait and see.
Altogether
a budget which may not make a big impact on the present economic conditions of
the country.
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