DNewsCafe : Income Tax rates for earning up to Rs 15 lakh have been slashed and no tax will be applied on earnings up to Rs 5 lakh, but no exemptions will be allowed if the tax payer opts for the new rates, she said in the Budget speech.

In a major announcement, the Narendra Modi government will sell part of its stake in Life Insurance Corporation (LIC), launching an IPO. Amid public fears over the PMC Bank scam, FM Nirmala Sithraman said in her budget speech that the insurance cover for each depositor will be increased from Rs 1 lakh to Rs 5 lakh. No relief on income tax slabs or rates has been announced yet. The government has also relaxed fiscal deficit for FY20 to 3.8 percent of the GDP and to 3.5 percent for FY21.

New scheme optional and without exemptions such as 80C, HRA, home loan, medical insurance, standard deductions

Up to 5% effective tax rate is nil

Tax slabs reworked as follows:
10% on income between Rs 5-7.5 lakh
15% on income between Rs 7.5-10 lakh
20% on income between Rs 10-12.5 lakh
25% on income between Rs 12.5-15 lakh
30% on income between Rs 15 lakh and above

While tax rates have been lowered, the actual benefit will depend on the exemptions forgone.