Question: How Is Income Tax Calculated On New Slabs?

How is new slab tax calculated?

Let’s understand income tax calculation under the current tax slabs and new tax slabs (optional) by way of an example….How to calculate income tax.

(See example)Up to Rs 2,50,000Exempt from tax0Total Income TaxRs 12,500 + Rs 25,500+ Rs 37,500 + Rs 50,000 + Rs 62,500 + Rs 1,77,600 + Rs 14,604Rs 3,79,7048 more rows.

What is the tax slab for 2019 2020?

Tax Rates for Individuals as per budget 2019-2020Income Tax Slab (in Rupees)Tax Rate for Individual Below the Age Of 60 Years0 to 2,50,000*Nil2,50,001 to 5,00,0005% of total income exceeding 2,50,0005,00,001 to 10,00,000Tax Amount of 12,500 for the income up to 5,00,000 + 20% of total income exceeding 5,00,0001 more row•Dec 11, 2019

What are new income tax slabs?

As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: Income up to Rs 2.5 lakh is exempt from tax, 5 per cent tax on income between Rs 250,001 to Rs 5 lakh; 20 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh …

Can I change from new tax regime to old?

Effectively, you can switch between new and old tax regime at the time of filing ITR. … CBDT also clarifies that even if one opts for New Tax Regime and the same intimation is made to employer or Deductor, it shall be only for the purposes of TDS during the previous year and cannot be modified during that year.

Is tax slab increased to 5 lakhs?

As per current income tax laws, a person is eligible for tax rebate up to Rs 12,500 under section 87A, if the net taxable income does not exceed Rs 5 lakh. Therefore, the tax liability in such a situation will be zero.

How do you calculate income tax for the financial year 2020 21?

Therefore, your net taxable income will be Rs 15, 40,000 (Rs 16 lakh minus Rs 60,000). The income tax liability in the new tax regime will be calculated on Rs 15.40 lakh….S. No.Income slabsIncome tax rate (%)5Between Rs 10,00,001 and Rs 12.5 lakh20%6Between Rs 12,50,001and Rs 15 lakh25%7Above Rs 15 lakh30%4 more rows•4 days ago

Is 80c removed in new tax slab?

Salaried taxpayers who opt for the new regime will have to forgo standard deduction as well as exemptions under chapter VI-A, including HRA, investments under Section 80C, medical insurance premium and even leave travel allowance which is tax free, if claimed once in a block of two years.

How can I reduce my taxable income?

12 Tips to Cut Your Tax Bill This YearTweak your W-4. The W-4 is a form you give to your employer, instructing it on how much tax to withhold from each paycheck. … Stash money in your 401(k) … Contribute to an IRA. … Save for college. … Fund your FSA. … Subsidize your Dependent Care FSA. … Rock your HSA. … See if you’re eligible for the Earned Income Tax Credit (EITC)More items…•

Is new or old tax slab better?

Income-tax rates under the new tax regime v/s the old tax regimeIncome slabs (Rs)Tax Rate(Old Regime)Tax Rate(New Regime – devoid of exemptions & deductions)7.5-10 lakh20%15%10-12.5 lakh30%20%12.5-15 lakh30%25%Above 15 lakh30%30%3 more rows•Feb 7, 2020

What is 80c in income tax 2020 21?

Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens. Section 80DD: ₹ 75,000 for disabled dependent or ₹1,25,000 for severely disabled dependent….Income Tax SlabTax RateTax Payable10,00,000 and above30%1,50,0002 more rows•Mar 11, 2020

Is there any standard deduction for FY 2020 21?

Therefore, the taxpayer can claim a standard deduction of Rs. 40,000* or the amount of pension, whichever is less. *Increased to Rs 50,000 for FY 2019-2020(AY 2020-21) through the Interim Budget 2019.

What is the income tax slab for 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22Taxable incomeTax Rate (Existing Scheme)Tax Rate (New Scheme)Rs. 7,50,001 to Rs. 10,00,00020%15%Rs. 10,00,001 to Rs. 12,50,00030%20%Rs. 12,50,001 to Rs. 15,00,00030%25%Above Rs. 15,00,00030%30%3 more rows

What is the formula to calculate taxable income?

Your Adjusted Gross Income (AGI) is then calculated by subtracting the adjustments from your total income. Your AGI is the next step in figuring out your taxable income. You then subtract certain deductions from your AGI. The resulting amount is taxable income on which your taxes are calculated.

Can I file ITR for AY 2020/21 now?

All Income Tax Return Preparation Software for AY 2020-21 are now available for e-Filing. ITR 1, 2, 3, 4, 5 & 7 for AY 2020-21 is now available for e-Filing. ITR 6 will be available shortly.

What is the income tax slabs for ladies?

The Tax Slab Applicable for Women Taxpayers FY 2019-20Income RangeTax RatesRs 2,50,001 to Rs 5,00,0005% of total income which exceeds Rs 2,50,001Rs 5,00,001 to Rs 10,00,000Rs 12,500 + 20% of total income which exceeds Rs 5,00,000Rs 10,00,001 and aboveRs 1,12,500 + 30% of total income which exceeds Rs 10,00,0001 more row•Oct 14, 2020