Quick Answer: Is New Or Old Tax Slab Better?

What are the income tax slabs for AY 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y.

2020-21/A.Y 2021-22Taxable incomeTax Rate (Existing Scheme)Tax Rate (New Scheme)Rs.

7,50,001 to Rs.

10,00,00020%15%Rs.

10,00,001 to Rs.

12,50,00030%20%Rs.

12,50,001 to Rs.

15,00,00030%25%Above Rs.

15,00,00030%30%3 more rows.

Which is the best tax regime?

Calculations show that salaried individuals claiming a large number of exemptions (80C, 80D, interest on housing loan, HRA and LTA etc.) are likely to be better off in the existing income tax regime.

Can I change from new tax regime to old?

Effectively, you can switch between new and old tax regime at the time of filing ITR. … CBDT also clarifies that even if one opts for New Tax Regime and the same intimation is made to employer or Deductor, it shall be only for the purposes of TDS during the previous year and cannot be modified during that year.

Should you switch to the new income tax regime?

If the total of these exceeds the break-even amount, you will be better off in the old regime. On the other hand, if the total is below the break-even number, you should consider shifting to the new tax regime. For instance, consider an individual, less than 60 years old, with gross annual income of ₹15 lakh.

Is 80c removed in new tax slab?

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.

What is the new tax slab for 2019 20?

Income Tax Slabs and Rates for Financial Year: 2019-20Income Tax SlabVery Senior Citizens (aged 80 years and above)Up to 5,00,000Nil5,00,001 to 10,00,00020%Above 10,00,0001,00,000 + 30% of total income exceeding 10,00,000

What is the latest income tax slabs?

For super senior citizens, aged 80 years and above, income up to Rs 5 lakh is exempt from tax. Income from Rs 500,001 to Rs 10 lakh is taxed at 20 per cent and above Rs 10 lakh is taxed at 30 per cent….Related.Total income (Rs)Income tax rateFrom 12,50,001 to 15,00,00025 percentAbove 15,00,00030 percent5 more rows

What is the difference between new and old tax slab?

Also, those with an annual income of Rs. 7.5 lakhs to Rs. 10 lakhs will have to pay a 15% income tax….Old vs New: A Comparison For Different Slabs.OLD RATES (with exemptions)ANNUAL INCOMENEW RATE (without exemptions)5%Rs.2.5 – 5 lakh5%20%Rs.5 – 7.5 lakh10%Rs. 7.5 – 10 lakh15%30%Rs. 10-12.5 lakh20%3 more rows•Nov 6, 2020

Is new income tax slabs beneficial?

Taxpayers are trying to figure out whether the new tax structure is more beneficial. … Anyone claiming tax exemptions and deductions of more than Rs 2.5 lakh in a year will not gain from the new structure. This threshold of Rs 2.5 lakh includes the standard deduction of Rs 50,000 for which no investment is required.

Can I choose between new and old tax regime every year?

As per budget proposals, an individual has an option to switch between new and old tax regime every year. … However, 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.

How do I choose a new tax regime?

Soni says, “If an individual who has opted for old tax regime with his/her employer for TDS on salary, plans to opt new tax regime at the time of filing ITR, then he/she can do that by filling the new form.”

How can I save tax on my new tax regime?

If you’re shifting to new regime, reconsider tax-saving productsThe case for one-time tax-saving investment.Equity-linked savings scheme (ELSS): Investment in ELSS funds, which are diversified equity funds, offers deduction up to ₹1.5 lakh under Section 80C of the Income-tax Act, 1961. … Public Provident Fund (PPF): The other investment product you can look at is PPF.More items…•

Who will benefit from new tax regime?

70% of taxpayers will benefit from new income tax rates, slabs: Finance Ministry. Mumbai: The finance ministry expects at least 80 per cent of the taxpayers to move to the new income tax regime, Revenue Secretary Ajay Bhushan Pandey said on Friday.