India Cuts Personal Income Tax Rates

NEW DELHI (Reuters) – India has reduced personal income tax rates for certain individuals to stimulate consumption in Asia’s third-largest economy, which is expected to grow at its slowest rate in four years.

Under the new system introduced in 2020, the tax structure is as follows:
– Annual income up to 1.5 million rupees (approximately $17,300) is taxed at rates ranging from 5% to 20%.
– Income exceeding 1.5 million rupees incurs a flat 30% tax rate.

Finance Minister Nirmala Sitharaman announced that individuals earning up to 1.2 million rupees will no longer pay any tax.