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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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 |
|
|
Total |
Rs 45,000 |
|
|
|
Rs 75,400 |
|
|
|
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 |
|
|
Rs 12.5 Lakhs to Rs 15 [email protected] 25% |
62500 |
|
|
Rs 2,73,000 |
Total |
Rs 1,87,500 |
|
|
|
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 |
|
|
|
Rs 1,25,000 |
|
|
Total |
|
||
|
Rs 1,95,000 |
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 |
|
|
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 |
|
|
|
|
|
|
|
|
|
Rs 3,51,000 |
You save Rs 78,000 with the new income tax slabs.
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