From the upcoming Union Budget 2020-21 to be presented on 1 February, citizens are expecting a change in income tax slabs not seen since 2014. A change is anticipated this time.
According to a CNBC Awaaz report citing sources, the 5 percent income tax slab that currently includes income bracket of Rs 2.5 lakh to Rs 5 lakh could be relaxed to be extended to Rs 7 lakh.
Further, on the income bracket of Rs 7 lakh to Rs 10 lakh, the tax is proposed to be 10 percent. As for the Rs 10 lakh to Rs 20 lakh bracket, a 20 percent tax implication is proposed.
The Rs 20 lakh to Rs 10 crore bracket may attract 30 percent tax, while income of Rs 10 crore and above would see a likely change to 35 percent tax.
If the proposed changes come through, it could result in saving of around Rs 60,000 to Rs 1.6 lakh for salaried individuals, excluding cess.