Calculate Income Tax Slabs With New Rules

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.

Want to know more on Tax Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Calculate Income Tax Slabs With New Rules

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?

Calculate Income Tax on Salary of Rs 15 Lakhs

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

Income Tax on Income of Rs 8 Lakhs

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?

Income Tax on Income of Rs 12 Lakhs

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.

Income Tax on Income of Rs 20 Lakhs

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.

You May Also Watch

Iframe Content

Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.

Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.

Be Wise, Get Rich