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.
Also Read: Gift Tax Rules and Exemptions in 2020
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 ₹ 7.5 Lakhs Income
2) Old Vs New Regime Income Tax for ₹ 10 Lakhs Income
3) Old Vs New Regime Income Tax for ₹ 11.75 Lakhs Income
4) Old Vs New Regime Income Tax for ₹ 15 Lakhs Income
Also Read: Best Equity Mutual Funds to invest in 2020
5) Old Vs New Regime Income Tax for ₹ 20 Lakhs Income
If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.
Suresh KP
Old Vs New Regime Income Tax Slabs for FY2020-21
- 10 Highest-Return Mid-Cap Mutual Funds in the Last 5 Years - October 23, 2026
- 10 Mutual Funds That Are SIP Leaders Over the Last 5 Years - October 22, 2026
- How to Evaluate the Best Health Insurance in India for Different Life Stages - October 20, 2026
17 comments
Add a comment ↓Thanks for sharing this valuable information with us. It is really a helpful article!
you have compared when deduction is in place, same way request you to compare if at all no deduction is claimed in old and new regime.
My only income is from government pension and dividend income from companies.
If I select Old Scheme,and if my dividend income is<10 lakhs, whether I have to add my income from equity shares with my pension income
Great. Informative article. Thanks a lot, Suresh!!
Thanks Suresh for detailed article, I am sure it will be helpful to everyone.
Thank you Sanjay. Which one you are opting for now 🙂
Suresh , if i have business income losses from previous year should i continue in old regime or can opt for new regime ? Basically i habe to carry forward my business income losses.
Anand, It would depend on your taxable income. If you are in mid/senior level and earning good salary and claiming Rs 2 Lakhs and above as deductions, you should continue in old regime which is beneficial. But let us wait for complete clarifications about deductions / exemptions. Lets wait for couple of more weeks for this
Informative article. No Clarity as well if we can switch between Options on next financial year/ any time in the middle of Financial year. Not sure if that information is somewhere available from government
bottom line, if you are earning more than 15 lakhs, one would have to do both, old and new to dertmine the best option….more work for the filer!
Thanks for sharing a valuable information.
Can you share additional illustration for Above 20L or 25L annual income once there is better clarity on exemptions.
Or is it safe to assume that 20 lac illustration will hold good for all above slabs also.
Hello SP singh, as of now you can consider last illustration as an example. Once we have clarity and if there are any changes we would update this article.
Informative, thanks Suresh.
thank you RK. Pls share it on your FB/Twitter so that your friends also gets benefitted
Thanks a lot for the valuable information.
I always go through your blogs. Your analysis is proper and easy to understand
Thank you Pankaj