Budget 2020: New income tax rates; partial relief to middle class

Finance Minister Nirmala Sitharaman announced new income tax rates which may provide slight relief to the middle class. "We propose to bring a personal income tax regime, where income tax rates will be reduced, so now, person earning between Rs 5-7.5 lakh will be required to pay tax at 10% against current 20%. Those with income between Rs 7.5-10 lakh can pay tax at 15% against the current 20%. Those with income between Rs 10-12.5 lakh can pay tax at 20% against 30%," the Finance Minister announced. She said that in this new personal income tax regime, income tax rates will be significantly reduced for the individuals who forgo certain exemptions and deductions.