New Delhi: Presenting Union Budget 2020, Nirmala Sitharaman has announced major tax cut which will benefit the crores of taxpayers. (Full Coverage of Budget 2020)Also Read - Union Budget 2020: Govt Proposes to Sell a Part of Its Holding in LIC Through Initial Public Offering

Those earning up to Rs 5 lakh in a year will pay no tax, the minister announced. For income between Rs 7.5 lakh and Rs 10 lakh per annum, the tax rate has been reduced to 15 per cent from 20 per cent. For income between Rs 10 lakh to Rs 12.5 lakh, tax rated brought down to 20 per cent from 30 per cent. Also Read - Union Budget 2020: Policy For Data Centre Parks Throughout Country on Anvil, Says Sitharaman

The new tax slabs are optional, Sitharaman said. Also Read - Union Budget 2020: Rs. 22,000 Crore Outlay For Power, Renewable Energy Sector in FY21, Finance Minister

“Income tax rates will be significantly reduced for those who forego reliefs, exemptions,” the minister said. Explaining how these rate cuts will help an individual, the minister said, “A person earning Rs 15 lakh per anum and not availing any deductions will now pay Rs 1.95 lakh tax in place of Rs 2.73 lakh.”