New Delhi: Union finance minister Nirmala Sitharaman has made an attempt to shift from present tax regime to New Tax Code regime through this year’s Union Budget Fy21.
The union finance minister has offered the individual tax payers two options for their income tax compliance. An individual tax payers can now opt for present tax regime or the new one for their tax compliance. In the new tax regime the tax rate will be 10% for income between Rs5 lakh to 7.5 lakh, 15% for Rs7.5 lakh to 10 lakh, 20% for Rs10 lakh to Rs 12.5 lakh, 25% for Rs 12.5 lakh to Rs 15 lakh and 30% above 15 lakh. Those will prefer this new tax slab will have to forego the 70-odd tax rebates However, individual income tax payer earning Rs 5 to 10 lakh crore have to pay tax at 20% if they will chose to opt old tax regime and avail tax rebates.
