Given that the salaried class contribute to a large part of the tax kitty, more tax relief should be granted to certain segments as discussed below. There could be a restructuring of the income tax slabs even if there is no reduction in the top rates of tax, surcharge and cess. The peak basic tax rate of 30% is charged on individuals having an income of ₹10 lakh or more. This may be accompanied by a new slab for ₹10-20 lakh as the 20 percent tax rate above ₹5 lakh seems to be a steep increase over the immediately preceding 5 percent rate. If this happens, the 10 percent tax rate could be re-introduced for the ₹5-10 lakh income slab.

Source: Mint January 26, 2020 11:26 UTC