In a much relief to the middle class, the Finance Minister Nirmala Sitharaman might introduce income tax slab in the upcoming Union Budget 2020. If this appears to be true, the middle class will get a big relief.
According to some media reports, the 5 percent income tax slab might be relaxed to Rs 2.5 lakh to Rs 7 lakh which is from Rs 2.5 lakh to Rs 5 lakh currently.
10 percent tax is proposed for Rs 7 lakh to Rs 10 lakh and 20 percent tax for Rs 10 lakh to Rs 20 lakh bracket reportedly.
Reportedly 30 percent tax might be proposed for the bracket of Rs 20 lakh to Rs 10 crore and the income which is above Rs 10 crore, the tax might be around 35 percent.
Going by these speculations, persons who earn Rs 10 lakh will save 60,000 and Rs 15 lakh and Rs 20 lakh might be able to save Rs 1.1 lakh and Rs 1.6 lakh respectively.
The alleged personal income tax cuts will see more money in the households of middle and upper-middle-class which will, in turn, result in spending and investment by them.