Mumbai, September 23: With Union Finance Minister Nirmala Sitharaman on Friday announced a slew of measures in the corporate tax rates to boost market amid economic crisis, the task force on direct tax has now recommended the Finance Ministry to make substantial cuts in income tax slabs for individual taxpayers to boost demand. New Income Tax Slabs For Taxpayers: Here Are Five Rates Proposed by Task Force

Apart from recommending a substantial cut in the income tax, the task force has also sought to drop surcharges, and cess levied on income taxes. The committee also recommended a revise in the income tax bracket for individuals earning Rs 5-10 lakh per year and make it just 10 percent from present 20 percent. Among other changes, the task force has recommended a revision in the bracket of more than 20 lakh per year and charge 30 percent.

The current rate of 30 percent per annum is applicable for individuals earning over Rs 10 lakh per annum. The task force has asked the Union government to think on the tax slab for taxpayers earning over Rs 2 crore per year and charge 35 percent from them. Also, in its Direct Tax Report, the task force had suggested dropping of surcharges and cess levied on income taxes to revive demand from the country's middle-class. Nirmala Sitharaman’s Decision of Slashing Corporate Tax to Cost Nation Rs 1.45 Lakh Crore Annually.

Current Income Tax Slabs And Rates:

Income Slabs (Individual below 60 years of age) Tax Rates Income Slabs (resident & above 60 years but below 80 years) Tax Rates Income Slabs (resident & above 80 years) Tax Rates
Total income up to Rs. 2.5 Lac NIL Total income up to Rs. 3.00 Lac NIL NA NA
Total income exceeds Rs. 2.5 Lac but less than Rs.5 Lac 5% on amount exceeding Rs. 2.5 Lac Total income exceeds Rs. 3 Lac but less than Rs.5 Lac 10% on amount exceeding Rs. 3.00 Lac Total income up to Rs. 5 Lac NIL
Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 25,000 Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac + Rs. 20,000 Total income exceeds Rs. 5 Lac but less than Rs.10 Lac 20% on Income exceeding Rs. 5 Lac
Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000 Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1,20,000 Total income more than Rs. 10 Lac 30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac

New Income Tax Slabs And Rates Recommended:

Income Slabs (Individual below 60 years of age) Current Tax Rates Recommended Income Tax Rates
Total income up to Rs 2.5 Lakh NIL Nil
Total income exceeds Rs 2.5 Lakh but less than Rs.5 Lakh 5% on amount exceeding Rs. 2.5 Lakh 5% on amount exceeding Rs 2.5 Lakh and less than Rs 5 Lakh
Total income exceeds Rs 5 Lakh but less than Rs.10 Lakh 20% on Income exceeding Rs. 5 Lakh + Rs. 25,000 10% on Income exceeding 5 Lakh and below Rs 10 Lakh + Rs. 25,000
Total income more than Rs 10 Lakh 30% on Income exceeding Rs. 10 Lakh + Rs. 1,25,000 20% on Income exceeding Rs 10 Lakh and less than Rs 20 Lakh + Rs. 1,25,000
Total income more than Rs 20 Lakh No Data Available 30% on Income exceeding Rs. 20 Lakh and less than Rs 2 Crore + Rs. 1,25,000
Total income more than Rs 2 Crores No Data Available 35% on Income exceeding Rs. 2 Crores

Earlier on Friday morning, Sitharaman announced a cut in corporate rate taxes from 30 percent to 22 percent. She made it clear that effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies would be applicable. Due to this, the government stated that this would cost the government exchequer a revenue loss of Rs 1.45 lakh crore annually.

(The above story first appeared on LatestLY on Sep 23, 2019 06:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).