Union budget: the government reduces income tax rates, readjusts slabs

NEW DELHI: In a big change, the government reduced personal income tax rates on Saturday at the presentation of the Union.

Under the new fiscal structure, the finance minister, Nirmala Sitharaman, said that people who earn between Rs 5-7.5 lakh must pay taxes at 10% compared to the current 20%.

People who earn Rs 7.5 lakh to 10 lakh will be taxed with 15% of 20%; while those with revenues between Rs 10-12.5 lakh at 20% against 30%.

Live plus The gains between Rs 12.5 and Rs 15 lakh will be taxed with 25% of 30%; above Rs 15 lakh at 30% (no changes).

The new personal income tax regime will entail an estimated estimated income of Rs 40,000 million per year for the government.