Finance Ministry offers opt-in Income Tax scheme.

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.