NEW DELHI: Finance Minister Nirmala Sitharaman has proposed to make amendments for separation of government pension trust from the PFRDA to strengthen the pension fund regulatory body.
“Necessary amendments would be carried out in the Pension Fund Regulatory and Development Authority Act. It will also facilitate separation of NPS Trust for government employees from PFRDA,” Sitharaman said while presenting the Union Budget 2020-21 in Parliament on Saturday. She also said that the government will help ease in mobility while in jobs.
“We wish to infuse into the universal pension coverage with auto enrolment facility. Also, we wish to place such mechanism which will enable inter-operability and provide safeguards to the accumulated (pension) deposits,” she said.
Income tax rate for those earning Rs 5- 7.5 lakh reduced to 10%: FM
The finance minister slashed personal income tax rates in new I-T regime. Those earning between Rs 5 lakh and 7.5 lakh, will now pay 10% as income tax as against the prevailing 20%.
“Those earning between Rs 7.5 lakh and Rs 10 lakh will pay an income tax of 15%. For income between Rs 10 to Rs 12.5 lakh, the new tax rate is 20 % and for income between Rs 12.5 lakh and Rs15 lakh, the revised tax rate will be 25 per cent,” said the Finance Minister.
Tax rate of 30% on income above Rs 15 lakh will be continued, she said.
Around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify tax system and lower tax rates, she added.