Finance Minister Nirmala Sitharaman on Saturday, 1 February proposed to bring a new personal income tax regime, where income tax rates will be reduced but several exemptions will be removed.The new tax regime will be optional and the taxpayers will be given the choice to either remain in the old regime with exemptions and deductions or opt for the new reduced tax rate without those exemptions, she said in the Lok Sabha while unveiling the Budget 2020-21.Those opting for the new tax regime will have to forego 70 out of 100 exemptions currently enjoyed by taxpayers.Click here for live updates on Union Budget 2020Budget 2020: Govt Proposes to Sell Part of its Stake in LICA person earning between Rs 5-7.5 lakh will be required to pay tax at 10 percent in the new regime against the current 20 percent.Someone earning Rs 7.5-10 lakh will have to pay 15 percent tax against the current 20 percent.Those with income between Rs 10-12.5 lakhs will pay tax at 20 percent against the current 30 percent. Those earning above Rs 15 lakh will continue to pay the current 30 percent tax.Sitharaman said India has added “60 lakh new taxpayers” since the goods and services tax (GST) was rolled out in 2017.According to a State Bank of India analysis, just 4 percent of Indians pay income tax, but they account for 41 percent of the overall private consumption expenditure.New Simplified GST System From April 2020: FM’s Promise in BudgetThe proposal would lead to a revenue sacrifice of Rs 40,000 crore per annum, she added.The minister further said that the new regime will be optional and the people can continue with old regime if they desire so.Observing that there are about 100 tax exemptions and deductions, she said that 70 of them are being removed in the new simplified tax regime, while the remaining will be reviewed and examined in due course.Citing an example, she said, a person earning Rs 15 lakh per annum would be able to save Rs 78,000 in taxes by opting for the new tax regime.(With inputs from PTI)India a Lotus Blooming in Dal Lake: FM Quotes Kashmiri Poet Nadim We'll get through this! Meanwhile, here's all you need to know about the Coronavirus outbreak to keep yourself safe, informed, and updated. The Quint is now available on Telegram & WhatsApp too, Click here to join.