Shifting to optional new income tax slabs will benefit taxpayers: Official

Taxpayers willing to migrate to the new personal income tax regime announced in the Union Budget for 2020-21 will get more benefits than the older system, a senior official said on Monday. Multiple layers of deductions and exemptions add to the complexity of the Income Tax Act, Principal Chief Commissioner of Income Tax (West Bengal and Sikkim) B Jha said.

The availability of a new optional tax slab is a step towards simplification of the entire process, he said, speaking at a CII seminar here.

Jha said that as per current statistics, about 70 per cent of taxpayers avail exemptions of less than Rs 2 lakh.
Union Finance Minister Nirmala Sitharaman has maintained that the new tax scheme will benefit some taxpayers falling in certain brackets, if not all.

Talking about the budget proposal of taxing non- resident Indians not paying taxes in any foreign country, he said it will ensure that globetrotting invididuals do not avoid paying taxes.

Finance Minister Nirmala Sitharaman on Saturday presented her first full Budget 2020 of the Narendra Modi 2.0 government.

The Finance Minister had introduced a new income tax slab while reading the Budget Speech.

How much tax will you have to pay under new regime?

- Status quo on zero to Rs 5 lakh income tax slab;

- An income taxpayer earning from Rs 5 lakh to 7.5 lakh to pay 10 per cent;

- An income taxpayer earning from Rs 7.5 lakh to Rs 10 lakh to pay 15 per cent;

- An income taxpayer earning from Rs 10 lakh to 12.5 lakh to pay 20 per cent only;

See Zee Business Live TV Streaming Below:

- An income taxpayer earning from Rs 12.5 lakh to Rs 15 lakh to pay 25 per cent income tax; and

- A taxpayer earning above Rs 15 lakh per annum will have to pay 30 per cent of one's income.