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Income Tax

New Income Tax Slabs | Calculate your Tax Liability

February 4, 2020 by Team Instabizfilings

New Income Tax Slabs | Calculate your Tax Liability

  • Budget 2020 has proposed to introduce new income tax slabs with reduced rates for those foregoing exemptions and deductions under a "simplified tax regime". This new system is optional and will co-exist with the old one with three slabs and various exemptions and deductions available to the taxpayer.

  • As per the budget proposals, if a taxpayer opts for the new regime, then his income will be taxed as per the following tax slabs:

 

  • Individuals having net taxable income of up to Rs 5 lakh will be able to avail tax rebate of Rs 12,500 under section 87A in both, the existing and new, tax regimes. Effectively, this would mean that individual taxpayers having net taxable income of up to Rs 5 lakh will continue to pay zero tax.

  • However, individuals opting for the new tax regime would not be able to avail common tax breaks such deductions under section 80C for maximum of Rs 1.5 lakh by investing in specified instruments,

 

  • On the other hand, individuals opting for the existing tax regime will continue to pay tax on their income in FY 2020-21 same as FY 2019-20. These tax proposals will come into effect from April 1, 2020, once these are passed by the Parliament.
     

Existing Tax Slabs

Rate of Tax

Upto 2,50,000

0%

From 2,50,001 to 5,00,000

5%

From 5,00,001 to 10,00,000

20%

Above 10,00,000

30%

 

New Tax Slabs

 

Tax Slabs

Rate of Tax

Upto 2,50,000

0%

From 2,50,001 to 5,00,000

5%

From 5,00,001 to 7,50,000

10%

From 7,50,001 to 10,00,000

15%

From 10,00,001 to 12,50,000

20%

From 12,50,001 to 15,00,000

25%

Above 15,00,000

30%

 

Calculate your Tax Savings by Clicking here

 

Disclaimer

 

The information provided in this blog is purely for general informational purposes only. While every effort has been made to ensure the accuracy, reliability and completeness of the content presented, we make no representations or warranties of any kind, express or implied, for the same. 

 

We expressly disclaim any and all liability for any loss, damage or injury arising from or in connection with the use of or reliance on this information. This includes, but is not limited to, any direct, indirect, incidental, consequential or punitive damage.


Further, we reserve the right to make changes to the content at any time without prior notice. For specific advice tailored to your situation, we request you to get in touch with us.

 


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