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New Income Tax Regime vs Old: Which is Better?

IndianMoney.com Research Team | Posted On Saturday, February 01,2020, 05:32 PM

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New Income Tax Regime vs Old: Which is Better?

 

 

Finance Minister Nirmala Sitharaman has just presented the Union Budget 2020. In this common man’s budget let’s understand how the new income tax regime helps save more tax.

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New Income Tax Regime vs Old: Which is Better?

New Tax Regime vs Old Tax Regime:

On Rs 8 Lakhs:

 

(Old) Income of 8 Lakhs

 

(New) Income of 8 Lakhs

0-2.5 Lakhs

0

0-2.5 Lakhs

0

Rs 2.5 Lakhs to Rs 5 Lakhs @5%

12,500

Rs 2.5 Lakhs to Rs 5 [email protected] 5%

12,500

5 Lakhs to Rs 8 Lakhs @20%

60,000

Rs 5 Lakhs to Rs 7.5 [email protected] 10%

25,000

Total

Rs 72,500

Rs 7.5 Lakhs to Rs 8 [email protected] 15%

7,500

 

[email protected]%

Total

Rs 45,000

 

Rs 75,400

 

[email protected]%

     

Rs 46,800

You save Rs 28,600 with the new income tax slabs.

See Also: Union Budget 2019-2020: Major Takeaways

New Tax Regime vs Old Tax Regime:

On Rs 15 Lakhs:

 

(Old) Income of 15 Lakhs

 

(New) Income of 15 Lakhs

0-2.5 Lakhs

0

0-2.5 Lakhs

0

Rs 2.5 Lakhs to Rs 5 Lakhs @5%

12,500

Rs 2.5 Lakhs to Rs 5 [email protected] 5%

12,500

5 Lakhs to Rs 10 Lakhs @20%

1,00,000

Rs 5 Lakhs to Rs 7.5 [email protected] 10%

25,000

10 Lakhs to Rs 15 Lakhs @ 30%

1,50,000

Rs 7.5 Lakhs to Rs 10 [email protected] 15%

37,500

Total

Rs 2,62,500

Rs 10 Lakhs to Rs 12.5 [email protected] 20%

50,000

 

[email protected]%

Rs 12.5 Lakhs to Rs 15 [email protected] 25%

62500

 

      Rs 2,73,000

Total

Rs 1,87,500

 

 

[email protected]%

7500

 

 

 

      Rs 1,95,000

You save Rs 78,000 with the new income tax slabs.

New Tax Regime vs Old Tax Regime:

On Rs 12.5 Lakhs:

 

(Old) Income of 12.5 Lakhs

 

(New) Income of 12.5 Lakhs

0-2.5 Lakhs

0

0-2.5 Lakhs

0

Rs 2.5 Lakhs to Rs 5 Lakhs @5%

12,500

Rs 2.5 Lakhs to Rs 5 [email protected] 5%

12,500

5 Lakhs to Rs 10 Lakhs @20%

1,00,000

Rs 5 Lakhs to Rs 7.5 [email protected] 10%

25,000

10 Lakhs to Rs 12.5 Lakhs @ 30%

75,000

Rs 7.5 Lakhs to Rs 10 [email protected] 15%

37,500

Total

Rs 1,87,500

Rs 10 Lakhs to Rs 12.5 [email protected] 20%

50,000

 

[email protected]%

 

Rs 1,25,000

   

Total

 

 

Rs 1,95,000

[email protected]%

5000

 

 

 

Rs 1,30,000

You save Rs 65,000 with the new income tax slabs.

See Also: Will Middle Income Salaried Class Benefit From Union Budget 2020?

New Tax Regime vs Old Tax Regime:

On Rs 20 Lakhs:

 

(Old) Income of 20 Lakhs

 

(Old) Income of 20 Lakhs

0-2.5 Lakhs

0

0-2.5 Lakhs

0

Rs 2.5 Lakhs to Rs 5 Lakhs @5%

12,500

Rs 2.5 Lakhs to Rs 5 [email protected] 5%

12,500

5 Lakhs to Rs 10 Lakhs @20%

1,00,000

Rs 5 Lakhs to Rs 7.5 [email protected] 10%

25,000

10 Lakhs to Rs 20 Lakhs @ 30%

3,00,000

Rs 7.5 Lakhs to Rs 10 [email protected] 15%

37,500

Total

412500

Rs 10 Lakhs to Rs 12.5 [email protected] 20%

50,000

 

[email protected]%

Rs 12.5 Lakhs to Rs 15 [email protected] 25%

62,500

 

 

Rs 15 Lakhs to Rs 20 [email protected]%

1,50,000

 

Rs 4,29,000

Total

337,500

 

 

[email protected]%

 

 

 

 

Rs 3,51,000

You save Rs 78,000 with the new income tax slabs.

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