New Income Tax Slabs 2021: Finally, the long wait is over and the big Budget 2021 day is here. Union Finance Minister Nirmala Sitharaman is all set to deliver the Budget speech and table the Union Budget 2021-22 in Parliament today at 11 am. It is highly expected that Modi government may announce New Income Tax Slabs 2021-22 in Union Budget 2021.

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Tax payers are expecting that Modi government will come up with some relief in terms of Income Tax slabs in Union Budget 2021

In Budget 2020, Finance Minister Nirmala Sitharaman had announced cuts in personal income tax, extended tax benefits for affordable housing and gave relief to companies on payment of dividend as the government looked to boost consumption.

In Budget 2020, Finance Minister Nirmala Sitharaman had announced cuts in personal income tax, extended tax benefits for affordable housing and gave relief to companies on payment of dividend as the government looked to boost consumption.

Offering an optional lower rate of income tax to individuals, Sitharaman in her Budget for 2020-21 had proposed new tax slabs of 15 per cent and 25 per cent in addition to the existing 10 per cent, 20 per cent and 30 per cent. The new I-T slabs would be for individuals not availing certain specified deductions or exemptions.

In Budget 2020, under the proposed I-T slab, annual income upto Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent.

In Budget 2020, it was announced that those earning between Rs 10 and 12.5 lakh will pay tax at the rate of 20 per cent, while those between Rs 12.5 and Rs 15 lakh will pay at the rate of 25 per cent. Income above Rs 15 lakh will be taxed at 30 per cent.