Which Income Tax Slab Is Better Old Or New?

What is difference between old and new income tax?

The Budget offered taxpayers the option to pay tax as per the new regime under reduced rates with no exemptions.

They can avail rebates and exemptions by staying in the old regime and paying tax at the existing higher rate.

Under the new tax regime, taxpayers will have to pay no tax for annual income up to Rs 2.5 lakh..

What is the new income tax slab for 2019 20?

⭐ What are the Income Tax slab rates for AY 2019-20?IncomeTaxUp to Rs 2,50,000No taxRs 2,50,000 to Rs 5,00,0005% on income more than Rs 2.5 lakh subject to a maximum of Rs 12,500Rs 500,000 to Rs 10,00, 00020% on income exceeding Rs 500,000 subject to a maximum of Rs 1 lakh plus Rs 12,5001 more row•Dec 11, 2019

What is the slab rate for AY 2020 21?

Also Read: Income Tax Slab for FY 2020-21 Part 2:Income Tax SlabsTax RatesUp to ₹3,00,000NilWithin the tax bracket of ₹3,00,000 to ₹5,00,0005%Within the tax bracket of ₹5,00,001 to ₹10,00,000₹10,000 + 20% of total income exceeding ₹5,00,000Above ₹10,00,000₹1,10,000 + 30% of total income exceeding ₹10,00,000

What deductions are not allowed in new tax regime?

The important tax breaks that will not be available under the new tax regime include Section 80C (Investments in PF, NPS, Life insurance premium, home loan principal repayment etc.), Section 80D (medical insurance premium), tax breaks on HRA (House Rent Allowance) and on interest paid on housing loan.

How do I choose a new tax regime?

Soni says, “If you opt for new tax regime for deduction of taxes from salary, then remember your Form 16 will not have details of all the tax-exemptions and deductions that you may be eligible to claim if you opt for the existing/old tax regime at the time of filing ITR.”

What is the rebate for AY 2020 21?

From the AY 2020-21 rebate u/s 87A (only for Individual) is available only if the Net Total Income < Rs. 5,00,000/-. The quantum of maximum rebate will be Rs. 12500/-....Income tax slabs.Taxable incomeTax RateRs. 2,50,000 to Rs. 5,00,0005%Rs. 5,00,000 to Rs. 10,00,00020%Above Rs. 10,00,00030%1 more row•Aug 10, 2020

Which tax regime is better for 20 lakhs?

If the total is equivalent to or exceeds Rs 2.5 lakh, then he/she would pay the same or less tax in the existing tax regime vis-à-vis the new regime….Synopsis.ParticularsTax payable in Existing RegimeTax payable in New RegimeIncome Tax (Rebate u/s 87A is NIL)3,37,5003,37,500Cess @ 4%13,50013,5008 more rows•Feb 21, 2020

Is 80c applicable in new tax regime?

Under the new tax regime, an individual cannot avail tax benefit under section 80C on the contribution made to his/her PPF account. However, any interest accrued or maturity amount received from the PPF account continues to be tax-exempt in the new tax structure as well.

Is new tax regime beneficial?

In case an individual claims lower deductions for tax savings, towards health insurance, investment in NPS and so on, the current system will be more beneficial. However, if an individual claims a lower deduction of Rs 1 lakh under section 80C, then the new tax regime will be beneficial.

Which income tax slab is best?

Income tax slab for Individual aged above 60 years to 80 yearsIncome Tax SlabTax Rates for Senior citizens aged above 60 Years & Less than 80 YearsRs 0-.00- Rs. 3.00 lakhNILRs 3.00 lakh- Rs 5.00 Lakh5%Rs 5.00 lakh – Rs 10 Lakh20%> Rs 10 Lakh30%Dec 30, 2020

Can I change from new tax regime to old?

As per budget proposals, an individual has an option to switch between new and old tax regime every year. In order to be eligible to opt for the tax structure as per an individual’s convenience, there is one condition that must be satisfied.

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

Is new or old tax slab better?

Enter new tax regime – More slabs, lower tax rate but no way to reduce taxesTax Slab(₹)Old Tax RatesNew Tax Rates5,00,000 – 7,50,00020%10%7,50,000 – 10,00,00020%15%10,00,000 – 12,50,00030%20%12,50,000 – 15,00,00030%25%3 more rows•Mar 12, 2020

Is the new income tax slabs beneficial?

The new income tax rate is beneficial for people with low investments in policy schemes. It offers seven lower tax slabs. … This offers better flexibility to taxpayers to choose a different tax regime as per their requirement. The exclusion of 70 exemptions also helps in containing income tax frauds.

What is the latest income tax slabs?

Income Tax Slabs and Rates for Financial Year: 2019-20Income Tax SlabSenior Citizens (aged 60 years but less than 80 years)Up to 3,00,000Nil3,00,001 to 5,00,0005%5,00,001 to 10,00,00010,000 + 20% of total income exceeding 5,00,000Above 10,00,0001,10,000 + 30% of total income exceeding 10,00,000