Significant relief for taxpayers with new personal income tax regime

Published By : Admin | February 1, 2020 | 17:24 IST

In order to provide significant relief to the individual taxpayers and to simplify the Income-Tax law, the Union Budget proposes to bring a new and simplified personal income tax regime wherein income tax rates will be significantly reduced for the individual taxpayers who forgo certain deductions and exemptions. While presenting the Union Budget 2020-21 in Parliament today, the Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman said, “The new tax regime shall be optional for the tax payers.” She further said that an individual who is currently availing more deductions and exemptions under the Income Tax Act may choose to avail them and continue to pay tax in the old regime.

 

The New personal Income tax regime proposes the following tax structure:

Taxable Income Slab (Rs.)

Existing tax rates

New tax rates

0-2.5 Lakh

Exempt

Exempt

2.5-5 Lakh

5%

5%

5-7.5 Lakh

20%

10%

7.5-10 Lakh

20%

15%

10-12.5 Lakh

30%

20%

12.5-15 Lakh

30%

25%

Above 15 Lakh

30%

30%

In the new tax regime, substantial tax benefit will accrue to a taxpayer depending upon exemptions and deductions claimed by him.  For example, a person earning Rs 15 lakh in a year and not availing any deductions etc. will pay only Rs, 1,95,000 as compared to Rs, 2,73,000 in the old regime. Thus his tax burden shall be reduced by 78,000 in the new regime. He would still be a gainer in the new regime even if he was taking deduction of Rs 1.5 lakh under various sections of Chapter VI –A of the Income Tax Act under the old regime.

The new tax regime will be optional for the taxpayers. As per the Memorandum explaining the provision in the Finance Bill, the option shall be exercised for every previous year where the individual or the HUF has no business income and in other cases the option once exercised for a previous year shall be valid for that previous year and all subsequent years. The option shall become invalid for a previous year or previous years as the case may be if the individual or HUF fails to satisfy the conditions and other provisions of the Act shall apply.

The new personal income tax rates will entail estimated revenue forgone of Rs 40,000 crore per year.  Smt Sitharaman said, “We have also initiated measures to prefill the income tax return so that an individual who opts for the new regime would need no assistance from an expert to file his return and pay income tax.” The Finance Minister said that in order to simplify the income tax system, she has reviewed all the exemptions and deductions incorporated over the past several decades.”

In the Budget, around 70 of the existing exemptions and deductions of different nature (more than 100) have been proposed to be removed.  Remaining exemptions and deductions will be reviewed and rationalised in the coming years with a view to further simplifying the tax system and lowering the tax rate.

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Cabinet approves infrastructure projects between National Highway-19 and Varanasi Ring Road in Uttar Pradesh worth Rs.14447.64 crore
July 15, 2026

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, today has approved the development of a Link/Connector Corridor between National Highway-19 (NH-19) and the Varanasi Ring Road with riverbank connectivity along the River Ganga for the decongestion of Varanasi City in Uttar Pradesh. The 46.039 km project, comprising a six-lane elevated main carriageway, an iconic cable-stayed bridge, an extradosed Foot Over Bridge-cum-Major Bridge, loops, ramps, link roads and service roads, will be implemented under the Hybrid Annuity Model (HAM) at a total capital cost of Rs.14,447.64 crore including a civil construction cost of Rs.6,037.85 crore (including utility shifting, excluding GST) and a land acquisition cost of Rs.541.11 crore under NH(O).

The project will provide seamless connectivity between NH-19 and the Varanasi Ring Road, significantly decongesting the city’s road network and improving urban mobility. Designed for an operating speed of 80–100 km/h, it is expected to reduce the average travel time across the project influence area from approximately 60 minutes to 20 minutes, representing a reduction of nearly 67 per cent. Travel time between NH-19 and Kashi Railway Station will be reduced from approximately 50 minutes to about 25 minutes, resulting in a saving of about 25 minutes (nearly 50 per cent).

Aligned with the PM Gati Shakti National Master Plan, the corridor will strengthen multimodal connectivity by providing seamless access to major highways, railway stations, Lal Bahadur Shastri Airport and Ramnagar IWAI Port, while significantly improving connectivity to key religious, educational and cultural landmarks, including the Kashi Vishwanath Temple, Banaras Hindu University (BHU), Namo Ghat, Ramnagar Fort and the Ghats of Varanasi. By linking important economic, social and logistics nodes, the project will improve logistics efficiency, enhance road safety, facilitate tourism and pilgrimage, and support sustainable regional economic growth across eastern Uttar Pradesh.

The corridor has been conceived as a transformative urban mobility project to decongest the road network of Varanasi & Chandauli by providing a high-speed, access-controlled connection between NH-19, the Varanasi Ring Road (NH-135B), Ramnagar/ BHU and other major urban destinations. With more than 15 crore tourists and pilgrims visiting Varanasi every year, the project will significantly improve connectivity to major religious, educational and cultural landmarks, including the Kashi Vishwanath Temple, Banaras Hindu University (BHU), Namo Ghat, Ramnagar Fort, the Ghats of Varanasi, and Kashi Railway Station, while substantially reducing congestion on the existing city road network. An elevated spur between BHU/Lanka and Samne Ghat will further ease traffic congestion at the heavily trafficked Lanka Junction by separating through traffic from local traffic movements.

The project will improve road safety through controlled-access movement, reduce vehicle operating costs and emissions, enhance travel reliability, and facilitate the efficient movement of passenger and freight traffic. It will also decongest NH-19, the BHU-Ramnagar Corridor and NH-35 by diverting through traffic away from the densely developed urban core.

The project incorporates several landmark engineering features, including an iconic 910 m cable-stayed bridge across the River Ganga, a 1.32 km extradosed Foot Over Bridge-cum-Major Bridge with travelators providing seamless pedestrian connectivity to the Kashi Vishwanath Temple, a Rail Over Bridge over the existing/proposed Malviya Bridge, dedicated emergency parking bays, noise barriers, façade lighting and architectural elements inspired by the cultural heritage of Varanasi. These features will not only improve transportation efficiency but also enhance the city’s urban landscape, create an iconic addition to Varanasi’s skyline, and reinforce its position as one of India’s foremost religious and cultural destinations.

Planned in accordance with the PM Gati Shakti National Master Plan, the corridor will strengthen multimodal connectivity by linking one Economic Node (Chandauli SEZ), one Social Node (Chandauli Aspirational District) and six major Logistics Nodes, namely Lal Bahadur Shastri Airport, Kashi Railway Station, Banaras Railway Station, Varanasi City Railway Station, Pt. Deen Dayal Upadhyay Junction and Ramnagar IWAI Port. By providing seamless connectivity between these transport hubs and key destinations such as the Kashi Vishwanath Temple, Banaras Hindu University (BHU), Namo Ghat, Ramnagar Fort and the Ghats of Varanasi, the project will enhance multimodal integration, improve logistics efficiency, facilitate tourism and pilgrimage, and support sustainable regional economic development across eastern Uttar Pradesh.

Overall, the proposed Ganga Elevated Corridor will create a modern, high-capacity urban transport corridor that transforms mobility in Varanasi by providing faster, safer and more reliable connectivity, significantly reducing congestion, strengthening multimodal integration, enhancing tourism and pilgrimage infrastructure, and supporting sustainable economic growth in line with the vision of PM Gati Shakti and Viksit Bharat.

Map of Corridor: