Srinagar, February 01: Finance Minister, Nirmala Sitharaman said that the tax rate of 30 per cent on income above Rs 15 lakh will continue.
For income between Rs 7.5 lakh and Rs 10 lakh the tax rate has been reduced to 15 per cent. An individual will be required to pay tax at a reduced rate of 10 per cent between the income of Rs 5-7.5 lakh under the new regime.
Presently an individual pays 20 per cent of tax on income between Rs 5 and 10 lakh and 30 per cent on income beyond Rs 10 lakh, Sitharaman said earlier. To provide significant relief to individual taxpayers, I propose to bring a new simplified personal income tax regime, where the IT rates will be decreased the minister also said.
Further, the Minister also said that the new income tax rates would be optional and all exemptions will be taken away if opted for the FM also said.
The FM also said that those earning up to Rs 5 lakh per year will pay no income tax. Rs 40,000 crore per annum will be the revenue forgone from the new IT rates, the finance minister also said.