Quick Answer: Which Income Tax Slab Is Better Old Or New?

What is the new tax regime 2020?

Income tax slab rate applicable for New Tax regime – FY 2020-21.Income Tax SlabNew Regime Income Tax Slab Rates for FY 2020-21 (Applicable for All Individuals & HUF)Rs 0.0 – Rs 2.5 LakhsNILRs 2.5 lakhs- Rs 3.00 Lakhs5% (tax rebate u/s 87a is available)Rs.

3.00 lakhs – Rs 5.00 LakhsRs.

5.00 lakhs- Rs 7.5 Lakhs10%4 more rows•Mar 16, 2021.

Is 80C removed in 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … However, all without deductions.

Is new or old tax slab better?

If he chooses the old rates, he can deduct Rs. 1.5 lakhs under Sec 80C. His taxable income now is Rs….Old vs New: A Comparison For Different Slabs.OLD RATES (with exemptions)ANNUAL INCOMENEW RATE (without exemptions)20%Rs. 7.5 – 10 lakh15%30%Rs. 10-12.5 lakh20%Rs. 12.5-15 lakh25%Rs. 15 and above30%3 more rows•Nov 6, 2020

Is new income tax slabs beneficial?

In case an individual claims lower deductions for tax savings, towards health insurance, investment in NPS and so on, the current system will be more beneficial. However, if an individual claims a lower deduction of Rs 1 lakh under section 80C, then the new tax regime will be beneficial.

Which regime is better for income tax?

New taxation regime is better for employees with less salary and less investments resulting in lesser deductions and exemptions.

Is new tax regime mandatory?

The new tax regime co-exists with the earlier tax system, and was made optional for taxpayers. … There is a 20 per cent tax for income between Rs 10 lakh and Rs 12.5 lakh, and 25 per cent for income between Rs 12.5 lakh and Rs 15 lakh against the existing rate of 30 per cent for each of these categories.

Is PF exempted in new tax regime?

Contribution By Employer Towards’ Employees NPS/EPF Account For the FY 2020-21, the employer’s contributions towards superannuation, EPF, NPS is available for tax exemption up to a maximum limit of Rs. 7.5 lakh. … Currently, the employer’s contribution towards EPF remains 12% of the employee’s basic salary.

How can I save my tax in 2020-21?

Different investment options that can be claimed for tax deduction under section 80C are:Employee Provident Fund (EPF)Public Provident Fund (PPF)National Savings Certificates (NSC)5-year post office or bank saving accounts.Equity Linked Savings Schemes (ELSS)Post Office Senior Citizen Scheme.Tuition fees of Kids.More items…•Nov 18, 2020

What is the 80C limit for 2020 21?

Income Tax Deductions in IndiaSectionsIncome Tax Deduction for FY 2019-20 (AY 2020-21)Limit for FY 2019-20 (AY 2020-21)Section 80CInvesting into very common and popular investment options like LIC, PPF, Sukanya Samriddhi Account, Mutual Funds, FD etcUpto Rs 1,50,000Section 80CCCInvestment in Pension Funds32 more rows•Dec 5, 2020

Can I change from new tax regime to old?

As per the laws, the employees have to choose between the old and the new tax regime and inform their employers about their choices, however, if one is not certain with the choice then he/she can certainly change his/her decision at the time of ITR filing.

What is the income tax slab for 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22Taxable incomeTax RateUp to Rs. 2,50,000NilRs. 2,50,001 to Rs. 5,00,0005%Rs. 5,00,001 to Rs. 10,00,00020%Above Rs. 10,00,00030%

What is the latest income tax slabs?

Income Tax Slabs and Rates for Financial Year: 2019-20Income Tax SlabIndividuals below the age of 60 yearsUp to `2,50,000Nil2,50,001 to 5,00,0005%5,00,001 to 10,00,00012,500 + 20% of total income exceeding 5,00,000Above 10,00,0001,12,500 + 30% of total income exceeding 10,00,000

How can I save tax on 2020-21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.May 25, 2020