The Income Tax Act has, since 1989, provided for up to three times penalty on escaped tax.
The tax rate for those earning between ₹5 lakh and ₹7.5 lakh has been lowered from 20% to 10%, and for incomes between ₹7.5 lakh and ₹10 lakh to 15% from 20%. Similarly, tax rates have been lowered from 30% to 20% for those earning between ₹10 lakh and ₹12.5 lakh, and to 25% for those with incomes from ₹12.5 lakh to ₹15 lakh.
However, tax payers can opt for new rates only if they give up almost all tax exemptions and deductions they enjoy under the current regime.
The graphic looks at various scenarios of taxable income for salaried individuals and calculates the total tax payable before the proposals in Budget 2020-21 and after applying them. This is based on Ernst and Young calculations.
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.
