Income Tax Slab for 2020-21

Income Tax Slab for 2020-21

The #Budget2020 was announced today 1st February 2020 by Hon. Finance minister Nirmala Sitharaman.

The good news is that people who earn up to 5 lakh will not have to pay any #IncomeTax. Check other slaps in the table below

income tax 2020

Income Tax Slabs 2020-21

Yearly IncomeTax Rate
Up to 5 LakhNill
5 – 7.5 lakhs10%
7.5 – 10 lakhs15%
10 -12.5 lakhs20%
12.5 -15 lakhs25%
15 lakh and Above30%

Other Key Announcements in Budget 2020

For home buyers: Government has extended an additional Rs 1.5 lakh benefit on interest paid on housing loan till March 2021

Bank deposit insurance coverage: Your money will be safe in case your bank becomes insolvent. You will be eligible for up to 5 lakh instead of 1 lakh earlier.

The government proposes to sell a part of its holding in LIC through IPO (initial public offer).

In today’s Budget speech, FM proposed that the government will sell its stake in IDBI Bank to private investors and also amend the Banking Regulation Act to strengthen co-op banks.

Budget 2018 Key Highlights

Budget 2018 Key Highlights

No Change in Tax Slabs in this Budget:

  • There will no change for tax slabs for income tax.
  • Standard deduction of Rs 40,000 allowed for transport, medical reimbursement for salaried class.
  • Section 80D limit proposed to be hiked to Rs 50,000 for senior citizens
Budget 2018 Key Highlights 1

Proposals and Announcements:

  • All trains will soon have Wifi and CCTV.
  • All railways stations with a footfall of more than 25,000 to have escalators
  • PAN a must for transactions above Rs 2.5 lakh or more
  • Govt health scheme to cover 10 crore poor families is the world’s largest government-funded health protection scheme.
  • Electronic IT assessment will be rolled out across the country,
  • Kisan credit card facility extended to fisheries and animal husbandry sectors.
  • 2 crore more toilets will be built under Swachh Bharat Mission.
  • 1 crore houses to be built under Pradhan Mantri Awas Yojana (PMAY) in rural areas.
  • Rs 4.6 lakh crore sanctioned under MUDRA Scheme to target 3 lakh crore for lending under PM Mudra Yojana
  • 99 cities selected for smart cities project with an outlay of Rs 2.04 lakh crore.
  • 5 lakh WiFi hotspots will be set up in rural areas to provide easy internet access
  • Cash payments of more than Rs 10,000 by trusts and institutions will not be allowed.
  • Companies with turnover of up to Rs 250 crore to be taxed at 25 percent:
  • 60 crore bank accounts under the Jan Dhan Yojana to be opened.
  • Bitcoins, not a legal tender, and Govt. will identify it as an illegitimate transaction.
  • Govt will bring a scheme to provide a unique ID to every enterprise similar to Aadhaar.
  • Health and education cess has been increased to 4% from 3%
  • Rs 600 crore allotted to Tuberculosis patients undergoing treatment.
  • Amrut program to focus on the water supply to all households in 500 cities.
  • Government to contribute 12 percent of EPF contribution for new employees in all sectors
  • proposed to introduce a tax on distributed income by equity-oriented mutual funds at 10 percent.
  • proposed to tax long-term capital gains exceeding Rs 1 lakh at 10% without indexation.
  • Specialized railway university to be set up at Vadodara.
  • Pradhan Mantri Vaya Vandana Yojana (PMVVY), to be increased to Rs 15 lakh from the present Rs 7.5 lakh.
    Airport capacity to be hiked to handle 1 billion trips every year.

Some Tax Changes:

  • Customs duty on dental hygiene, perfumes, after-shave, room deodorizers, deodorants, preparations for use on hair increased to 20%.
  • Import duty on fruit juice increased from 30% to 50%.
  • Customs duty on mobile increased to 20% from existing 15%
  • Import duty on LCD/LED/OLED panels, parts of TVs hiked to 15%, duty on smart watches, wearable devices, footwear increased to 20%.

Salary Changes:

proposed revising salary of:

  • Rs 5 lakh for the President of India
  • Rs 4 lakh for the Vice President
  • Rs 3.5 lakh for the Governors

In short, the budget 2018-19 is a balanced budget for every sector. There is no change in the Salaried class but 1% extra in form of cess to be an extra burden. Let us know in the comments if you are happy with the budget.