Planning for your income tax or calculating your income tax liabilities seems to be a very daunting task for many of us. If you believed in this myth, surely the Finance Budget 2020 would prove you wrong.
As per Finance Budget 2020, some taxpayers are benefited, not only you are required to manage your taxes but also you have to decide which income tax regime is beneficial to you so you must Opt-in that tax regime New or Old.
It is not clearly known to me whether there are any other countries in the world where two different income tax slab is operational simultaneously.
Download Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Updated Version)
The Finance Minister has clearly told in her budget speech that this new tax regime will definitely give relief to the tax-payers. However, in this post, you would see a comparative analysis of the Income Tax Calculator F.Y 2020-21 and find out whether it is indeed benefited or not.
Comparison of 2 Tax Regimes
Advantages – Old Tax Regimes
• It encourages investment in tax saving instruments
• Existing income tax deductions are allowable
• Standard deductions and Professional tax are deducted from income
• The new tax regime is more benefited for income up to Rs.15 Lakh.
Disadvantages – New Tax Regimes
• It discourages investments to save tax
• No existing deductions are allowable
• No deduction permissible for Standard Deduction & Professional tax
• This tax regime is more benefited for who’s taxable income more than Rs.15 Lakh.
Before, digging into the deep let’s just see what are the important highlights of the New Income Tax Regime for F.Y 2020-21.
Standard Deduction on Salary income is not allowed any more;
1. Professional Tax also not allowed under the new tax regime;
2. Deduction on account of Income from House Property i.e. interest on the self-occupied house not allowed now;
3. Set off of carried forward losses and Depreciation are not permitted now;
4. Deductions for any allowance are not allowed now;
5. Main deductions U/S 80 C, 80 CCC, 80 D, 80E, 80 U, 80 G and etc. are not allowed under the new income tax regime.
Income Tax Slab continuing with effect from F..Y 2020-21 and A.Y 2021-22
Old & New Tax Regime for General Taxpayers up to 60 Years of Age
|Sl No||Tax Slab(Rs.)||Tax Rate||Income Tax (Rs.)|
|1||Income up to Rs.2,50,000||0||Nil|
|2||Rs.2,50,00 to Rs.5,00,000||5%||Taxable Income X 5%|
|3||Rs.5,00,001 to Rs.10,00,000||20%||Rs.12,500 + (TI – ₹5,00,000) X 20%|
|4||More than Rs.10,00,000||30%||Rs.1,12,500 + (TI – ₹10,00,000) X 30%|
All Tax Exemptions are entitled under the Old Tax Regime
New Income Tax Regime for the below 60 Years of Age ( Senior Citizen above 60 Years are the same New Tax Slab, no separate Tax Slab for the Senior Citizen as per Budget 2020)
|Sl No||Tax Slab(₹)||Tax Rate||Income Tax (₹)|
|1||Income up to ₹2,50,000||0||Nil|
|2||Rs.2,50,00 to ₹5,00,000||5%||Taxable Income X 5%|
|3||Rs.5,00,001 to ₹7,50,000||10%||Rs.12,500 + (TI – ₹5,00,000) X 10%|
|4||Rs.7,50,001 to ₹10,00,000||15%||Rs.37,500 + (TI – ₹7,50,000) X 15%|
|5||Rs.10,00,001 to ₹12,50,000||20%||Rs.75,000 + (TI – ₹10,00,000) X 20%|
|6||Rs.12,50,001 to ₹15,00,000||25%||Rs.1,25,000 + (TI – ₹12,50,000) X 25%|
|7||More than ₹15,00,000||30%||Rs.1,87,500 + (TI – ₹15,00,000) X 30%|
Download Automated Income Tax Preparation Excel Based Software All in One for the Government and Non-Government (Private) Employees for the Financial Year 2020-21 and Assessment Year 2021-22 U/s 115BAC
Feature of this Excel Utility:-
1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) This Excel Utility has the all amended Income Tax Section as per Budget 2020
3) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Updated Version)
4) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
5) Individual Salary Structure as per the Govt and Private Concern’s Salary Pattern
6) Individual Salary Sheet
7) Individual Tax Computed Sheet
8) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
9) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
10) Automatic Convert the amount into the in-words without any Excel Formula