Old Vs New Income Tax Slabs for FY2020-21 – Which one is beneficial for you?
Old Vs New Income Tax Slabs for FY2020-21 Review
Budget announcement done couple of days back has created some confusion to income tax payers between the old regime and new regimes tax slabs. Some experts say this is beneficial only to some taxpayers. Some say this is creating some more confusion in the computation of income tax. In this article, we would provide some insights on how much income tax you need to pay as per new income tax guidelines for Financial Year 2020-2021 i.e. Assessment Year 2021-2022? We would also provide an old vs new regime income tax slabs for FY2020-21 and conclude which one is beneficial for you.
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What are the new income tax slabs for FY2020-2021 (A.Y. 2021-2022)?
There are some lower income tax rates proposed if you forego income tax deductions. However, this is optional. Let us check what income tax rates would continue and what are the new income tax rates if you forego deductions.
There are two options for you now.
Option – 1: If you want to avail new beneficial income tax rates, you need to lose all deductions and exemptions.
Option – 2: You can also opt for existing income tax rates and avail all deductions and exemptions.
*For income tax assessee upto 60 years of age
Old Vs New Regime Income Tax Slabs for FY2020-21 – Which one is beneficial for you?
We have considered certain assumptions here while giving these examples. Some tax experts say we need to get clarity on a few items, whether such deductions / exemptions would continue in new regime taxation rates or not. We are assuming that all exemptions / deductions would be taken away like 80c, 80d, interest on home loan etc., In future if we get clarity, we would update these tables.
1) Old Vs New Regime Income Tax for Rs 7.5 Lakhs Income
2) Old Vs New Regime Income Tax for Rs 10 Lakhs Income
3) Old Vs New Regime Income Tax for Rs 11.75 Lakhs Income
4) Old Vs New Regime Income Tax for Rs 15 Lakhs Income
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5) Old Vs New Regime Income Tax for Rs 20 Lakhs Income
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Old Vs New Regime Income Tax Slabs for FY2020-21