Question

As per the new income tax regime announced in the Union Budget 2020, the tax rate for taxable income between Rs. 5 lakh to Rs. 7.5 lakh has been reduced to:
1. 15%
2. 5%
3. 10%
4. 20%

Answer 1

Correct Answer - Option 3 : 10%

The correct answer is 10%.

• In Union Budget, income Tab slab has been reduced from 20% to 10% if the annual income is  Rs 5 lakh - Rs 7.5 lakh.

• This step was taken to reduce the tax burden on taxpayers.
•  As per the Indian tax laws, taxpayers are divided into groups according to their taxable income.
• Income tax rates are applied to these groupings differently.
• These are called Income Tax slabs.