Budget 2020: Two major announcements for middle class | Master Stroke

In a major relief to middle class, Finance Minister Nirmala Sitharaman proposed to cut income tax rates and change slabs to lower tax incidence for those earning up to Rs 15 lakh a year. The Minister has proposed a 10% tax on income between Rs 5 lakh and Rs 7.5 lakh from the current 20 per cent now.

Income between Rs 7.5 lakh to Rs 10 lakh will also attract a lower tax of 15%. For annual income between Rs 10 lakh and Rs 12.5 lakh, the income tax rate has been reduced to 20% from 30%.