What this means A person earning R 15 lakh a year and not availing any deductions ( investments), etc. will pay only R 1,95,000 compared to R 2,73,000 in the old regime, with a savings of R 78,000. A person currently availing deductions and exemptions may choose to avail of them and continue to pay tax under the old regime.
R 5 lakh assured if bank shuts Good news for bank depositors as the Deposit Insurance Coverage in case a bank shuts down will increase from R 1 lakh to R 5 lakh. FM Nirmala Sitharaman has also stated that a robust mechanism is in place to monitor the health of all Scheduled Commercial Banks and that depositorsu2019 money is safe. Recently, after the Punjab Maharashtra Co- operative Bank fiasco where depositors feared losing their money, many are now hoping this will ensure that R 5 lakh will be given to them instead of R 1 lakh.
Savita Kolekar, a PMC Bank depositor, said, u201c I have been waiting for the bank services to resume and the biggest scare is that no matter what the deposit amount, only R 1 lakh was assured back. With this increase, we hope we will also be considered.u201d New tax slabs Income Slab ( R ) Existing Tax Rates New Tax Rates 0- 2.5 Lakh Exempt Exempt 2.5- 5 Lakh Exempt Exempt 5- 7.5 Lakh 20% 10% 7.5- 10 Lakh 20% 15% 10- 12.5 Lakh 30% 20% 12.5- 15 Lakh 30% 25% Above 15 Lakh 30% 30% A Correspondent mailbag@ mid- day. com THERE is some relief for taxpayers in the Union Budget 2020, with a reduction in tax percentage and the introduction of an option. One can choose to pay according to the new tax regime or by the old one depending on which benefits you more. While Union Finance Minister Nirmala Sitharaman insisted that professional involvement during filing taxes will be reduced, citizens say they might still have to rely on their CAs while calculating returns as both methods might have to be considered.
Currently, the Income Tax Act is riddled with exemptions and deductions, which make it almost impossible for taxpayers to comply with the law without the help of professionals. The new, simplified personal income tax regime, where tax rates will be significantly reduced for those who forgo certain deductions and exemptions, is an attempt to make things easier for taxpayers.
Under the new regime, tax has been reduced to 10 per cent for income between R 5 to R 7. 5 lakh against the current 20 per cent; between R 7.6 lakh and R 10 lakh, tax is 15 per cent tax against the current 20 per cent; between R 10.1 lakh and R 12.5 lakh, the tax is 20 per cent against the current 30 per cent.
Those earning between R 12.5 lakh and R 15 lakh will be taxed at 25 per cent against 30 per cent. Incomes above R 15 lakh will continue to be taxed at 30 per cent. Those earning up to R 5 lakh will have no tax burden.
