Budget 2020 : New income tax slabs #Budget2020

IndianMascot

IndianMascot

Core Member
New income tax slabs

0 - 2.5 lakh - exempted
₹2.5 lakh - ₹5 lakh - 5%
₹5 lakh - ₹7.5 lakh - 10% (20% earlier)
₹7.5 lakh - ₹10 lakh - 15% (20% earlier)
₹10 lakh to ₹12.5 lakh - 20% (30% earlier)
₹12.5 lakh - ₹15 lakh - 25% (30% earlier)
No change in tax rates above ₹15 lakh

It is to be noted that the new income tax rates and slabs will be applicable for those who forego exemptions and deductions. The deductions include Standard deduction, Section 80C, Section 80D, LTA, HRA, interest on housing loan on self-occupied property among others. The maximum benefit under this tax rate will be ₹78,000. The new rates will be optional. Individuals can continue to pay at the older rates.
Tax experts say that individuals will have to check if they will have greater benefit under the new tax rates. It depends on a case to case basis. However, individuals with business income cannot switch to the new tax rates and then back again to the old rates. But others can do so.
 
IndianMascot

IndianMascot

Core Member
They have designed the new Slab very smartly.

I check and found that Income Tax remains unchanged for me even if i gave up exemptions.

Now differentiator will be Interest paid towards Home Loan. If they allowed to exempt the same under new Tax Slab then i may opt to exempt.
 
scorpionking76

scorpionking76

EntMnt Knight
That's what we need to wait and watch on the home loan part. If it's still the same then we can proceed with the new one. It's like giving 100 extra. They have cleverly made it
 
IndianMascot

IndianMascot

Core Member
yes.

I have never done calculations in previous budget but this time i have done as they have done major reforms.
 
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