Finance Minister Nirmala Sitharaman made a big announcement, reducing the income tax rate for individual taxpayer. She also introduced new slabs for taxation purpose.
“People earning till Rs 5 lakh need not pay any income tax. For those who have an income between Rs 5 lakh and 7.5 lakh, will now pay 10 per cent tax; those earning between 7.5 lakh and 10 lakh will pay an income tax of 15 per cent. For income between 10 to 12.5 lakh, the new tax rate is 20 per cent and for income between 12.5 lakh and 15 lakh, the revised tax rate will be 25 per cent,” said the Finance Minister.
“There is no change for those earning above Rs 15 lakh per annum. They will be taxed at 30 per cent,” Sitharaman added. She also said that Income tax reforms have been proposed to promote growth. “The collection of taxes go back to the people manifold,” said Sitharaman.
The Finance Minister also slashed the corporate tax to that “India remains competitive”.
She had earlier said that the government won’t let taxpayers be harassed at the hands of officials.
“We wish to enshrine in the statutes a taxpayer charter through this Budget. Our government remains committed to taking measures to ensure that our taxpayers are free from tax harassment of any kind,” Sitharaman said in her budget speech.
She also promosed amendments to Companies Act that will take away criminal penalties for civil acts.
“Wealth creators will be respected in this country,” she added.
