New Delhi, February 1: According to the new income tax regime a person which earns less than Rs 5 lakhs per year shall pay no tax which was 5% as per the previous year’s regime.
- For annual incomes from Rs 5 – 7.5 lakhs per year will pay a tax of 10% which was 20% in the previous year.
- If a person earns a amont of Rs 7.5 – 10 lakhs per year will pay a tax of 15% which was 20%.
- For incomes from Rs 10 – 12.5 lakhs the tax leived on them will be 20% which was 30%.
- For incomes in range Rs 12.5 – 15 lakhs the tax is reduced from 30% to 25%.
- If the annual income is above 15 lakhs the new tax rate is 30%.
Finance Minister Nirmala Sitharaman said that any indivisual is free to choose between the new tax regime or the previous tax regime as per their will, furthur adding on it she told that any one can enroll him/her in the new income tax regime till 30th June 2020 for free but for enrollments past this date, the taxpayer will be charged with some amount of money for it.