Union Minister Nirmala Sitharaman announced changes in personal tax during her Budget speech on Saturday. As in the past, those earning up to Rs 5 lakh will pay no tax, she announced.
This is how much tax you will have to pay now:
- If income is between Rs 5-7.5 lakh, the tax rate is 10%
- If income is between Rs 7.5-10 lakh, the tax rate is 15%
- If income is between Rs 10-12.5 lakh, the tax rate is 20%
- If income is between Rs 12.5-15 lakh, the tax rate is 25%
- If income is above 15 lakh, tax rate of 30% to continue
However, Sitharaman indicated in her speech that tax payers willing to forego their current exemptions and deductions can benefit from these new rates. If not, they can continue with their existing rates. The fine print of the budget will reveal more.