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Know Income Tax Slab rates as per Direct Tax Code. Big relief proposed for individuals


Know Income Tax Slab rates as per Direct Tax Code. Big relief proposed for individuals

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Know Income Tax Slab rates as per Direct Tax Code. Big relief proposed for individuals

 

Currently, personal income is taxed under income tax at 5 percent for income between Rs 2.5 to Rs 5 lakh, at 20 percent for income between Rs 5 lakh and Rs 10 lakh, and 30 percent for an income of over Rs 10 lakh

 

The proposed Direct Tax Code has been liberal to increase the slab and reduce the taxes. The new slab rates proposed are zero tax levy on annual income between Rs 0- 5 lakh, 10 percent on income between Rs 5 -10 lakh, and 20 percent on income of Rs 10 to 20 lakh. Income above Rs 20 lakh and up to Rs 2 crore is proposed to be taxed at 30 percent without any surcharge

 

As per Budget of 2019, there will be a rebate on taxes paid on annual income up to Rs 5 lakh. This effectively means an annual income of up to Rs 5 lakh will attract zero tax will continue in Direct Tax Code as well.

 

Level of Income

FY 2019-20

% of Tax as per Income Tax

% proposed as per Direct Tax Code

Income Up to Rs 5 Lakhs

0%

0%

Income From Rs 5 Lakhs to 10 Lakhs

20%

10%

Income From Rs 10 Lakhs to 20 Lakhs

30%

20%

Income Above Rs 20 Lakhs

30%

30%

 

The proposal if implemented will have huge impact in tax saving which can boost demand in economy

 

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