Budget 2020 Live updates: BJP hails Budget, opposition says it lacks vision to revive economy

Against a backdrop of declining economic growth and limited room for fiscal expansion to stimulate the economy, the finance minister has delivered a reasonably sound Budget — staying within fiscal redlines, while also offering several efficiency-enhancing and potentially simulative set of policy reforms. Read more

Finance minister Nirmala Sitharaman on Saturday rolled out a new optional income tax regime that offers lower rates as a trade-off for foregoing exemptions for annual incomes up to Rs 15 lakh. The move was projected as an effort to provide relief and simplicity to taxpayers, particularly those at lower and middle income levels. The tax structure has been rejigged with the introduction of four thinly-sliced tax slabs between Rs 5 lakh and Rs 15 lakh with the rate applicable to each of them going down — from 20% to 10% between Rs 5 lakh and Rs 7.5 lakh, from 20% to 15% in the Rs 7.5 lakh-Rs 10 lakh bracket, from 30% to 20% for Rs 10 lakh-Rs 12.5 lakh and from 30% to 25% between Rs 12.5 lakh and Rs 15 lakh. In return for the lower taxes, those opting for this new scheme would have to forgo all deductions available under the existing regime. Read more

The answer to the question above depends on your level of income, whether you use tax-saving investments, and if so, to what extent. The Budget gives all taxpayers the option of migrating to a new scheme. For incomes up to Rs 15 lakh, you do get a lower tax rate, but this means you cannot avail of deductions and exemptions, ranging from HRA and standard deduction to those for investments under section 80C or medical insurance premium under Section 80D. That clearly involves a trade-off. Read more