Union Budget 2020: The finance ministry might announce some changes in the income tax slabs in the Budget 2020 that will be presented today by Finance Minister Nirmala Sitharaman. In the run-up to the Budget 2020, the minister met with various stakeholders to discuss how to revive the slowing economic growth.
The finance ministry is considering changing the tax slabs for taxpayers. If you earn less than Rs 10 lakh per month, it could impact you too.
At present the basic exemption limit is Rs 2.5 lakh. So, if you earn upto Rs 2.5 lakh you have nil tax liability and you are not required to file income tax. The tax slab rate for income above Rs 2.5 lakh and upto Rs 5 lakh is 5%. Again, you are not required to pay any tax if your income is upto Rs 5 lakh as there is a rebate upto Rs 12,500 under section 87A. For income between Rs 5 lakh and Rs 10 lakh the current tax slab rate is 20%. For income above Rs 10 lakh, the tax slab rate is 30%.
There have been talks about government levying 10% income tax on income above Rs 5 lakh to Rs 10 lakh and 20% for income above Rs 10 lakh to Rs 20 lakh and 30% for income above Rs 20 lakh to Rs 2 crore. Government may also introduce a new tax slab rate of 35% (without surcharges) for taxpayers making over Rs 2 crore per annum.
FULL COVERAGE:Union Budget 2020
In the run up to the Budget, Finance Minister Sitharaman met industry experts and stakeholder to discuss ways to revive the economy and boost consumption. She and Prime Minister Narendra Modi also took to social media seeking ideas and suggestions from individuals. The Prime Minister also conducted multiple high-profile pre-Budget meetings.
FM Sitharaman kicked off the 'Halwa Ceremony' on January 20 along with other senior finance ministry officials and clerks at the North Block. The halwa is prepared and served to the entire staff of the finance ministry before they are locked down at the ministry till the presentation of the budget by the Finance Minister.
The Budget session of Parliament will be held in two phases - from January 31 to February 11 and from March 2 to April 3. There will be a 19-day recess between the phases in order to allow the standing committees to examine the demands for grants.