The Finance Minister Nirmala Sitharaman presented the Union Budget 2020. This Budget was a common man’s budget. Let’s take a look at the Income Tax Slabs under the Union Budget 2020.
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Income Tax Slabs |
Optional Tax Rates |
Up to Rs 5 Lakhs |
No Tax |
Rs 5 Lakhs - 7.5 lakhs |
10% |
Rs 7.5 Lakhs - 10 Lakhs |
15% |
Rs 10 Lakhs - 12.5 lakhs |
20% |
Rs 12.5 Lakhs to Rs 15 Lakhs |
25% |
Above Rs 15 Lakhs |
30% |
If you opt for the new income tax regime, you can’t avail tax exemptions. You will have to let go of 70 tax exemptions. You can still get 30 tax exemptions.
See Also: What to Expect From Union Budget 2020?
Let’s say you have an income of Rs 15 Lakhs. How much income tax do you pay?
You have 0 to Rs 2.5 Lakhs – NIL
Rs 2.5 Lakhs – Rs 5 Lakhs : Rs 12,500 (Rs 2,50,[email protected]%)
Rs 5 Lakhs – Rs 7.5 Lakhs: Rs 25,000 (Rs 2,50,[email protected]%)
Rs 7.5 Lakhs – Rs 10 Lakhs: Rs 37,500 (Rs 2,50,[email protected]%)
Rs 10 Lakhs – Rs 12.5 Lakhs: Rs 50,000 (Rs 2,50,[email protected]%)
Rs 12.5 Lakhs – Rs 15 Lakhs: Rs 62,500 (Rs 2,50,[email protected]%)
The total income tax payable comes to Rs 1,87,500. You add cess of 4% to get Rs 1,95,000.
See Also: Union Budget 2019-2020: Major Takeaways
Let’s say you have an income of Rs 8 Lakhs. How much income tax do you pay?
You have 0 to Rs 2.5 Lakhs – NIL
Rs 2.5 Lakhs – Rs 5 Lakhs : Rs 12,500 (Rs 2,50,[email protected]%)
Rs 5 Lakhs – Rs 7.5 Lakhs: Rs 25,000 (Rs 2,50,[email protected]%)
Rs 7.5 Lakhs – Rs 8 Lakhs: Rs 7,500 (Rs 50,[email protected]%)
The total income tax payable comes to Rs 45,000. You add cess of 4% to get Rs 46,800.
See Also: Will Middle Income Salaried Class Benefit From Union Budget 2020?
Let’s say you have an income of Rs 12 Lakhs. How much income tax do you pay?
You have 0 to Rs 2.5 Lakhs – NIL
Rs 2.5 Lakhs – Rs 5 Lakhs : Rs 12,500 (Rs 2,50,[email protected]%)
Rs 5 Lakhs – Rs 7.5 Lakhs: Rs 25,000 (Rs 2,50,[email protected]%)
Rs 7.5 Lakhs – Rs 10 Lakhs: Rs 37,500 (Rs 2,50,[email protected]%)
Rs 10 Lakhs – Rs 12 Lakhs: Rs 40,000 (Rs 2,00,[email protected]%)
The total income tax payable comes to Rs 1,15,000. You add cess of 4% to get Rs 1,19,600.
Let’s say you have an income of Rs 20 Lakhs. How much income tax do you pay?
You have 0 to Rs 2.5 Lakhs – NIL
Rs 2.5 Lakhs – Rs 5 Lakhs : Rs 12,500 (Rs 2,50,[email protected]%)
Rs 5 Lakhs – Rs 7.5 Lakhs: Rs 25,000 (Rs 2,50,[email protected]%)
Rs 7.5 Lakhs – Rs 10 Lakhs: Rs 37,500 (Rs 2,50,[email protected]%)
Rs 10 Lakhs – Rs 12.5 Lakhs: Rs 50,000 (Rs 2,50,[email protected]%)
Rs 12.5 Lakhs – Rs 15 Lakhs: Rs 62,500 (Rs 2,50,[email protected]%)
Rs 15 Lakhs – Rs 20 Lakhs: Rs 1,50,000 (Rs 5,00,[email protected]%)
The total income tax payable comes to Rs 3,37,500. You add cess of 4% to get Rs 3,51,000.
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