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ARTICLE · 05 FEBRUARY 2020

Union Budget 2020 – Direct Tax – An Analysis

The Hon'ble Finance Minister presented the Union Budget 2020 on February 1st. The attached booklet contains an analysis of key announcements which will have impact on businesses.

IndiaTax

DIRECT TAX

INCOME TAX RATES

No changes proposed in the slabs of personal tax rate. Accordingly, the rate of tax as applicable for AY 2021-22 is as under:

Income (INR) Existing and Proposed Rates (%)
Individuals (Age < 60 years) and HUF, BOI, AOP Individual senior citizens (Age > 60 years < 80 years) Individual super senior citizens (Age > 80 years)
– 2,50000 NIL NIL NIL
250,001 – 300,000 5 NIL NIL
300,001 – 500,000 5 5 NIL
500,001 – 1,000,000 20 20 20
1,000,001 and above 30 30 30

An alternative conditional personal income-tax regime has been proposed. This would be available as an option to the above existing tax regime. The rate of tax applicable under the proposed regime are as under:

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