Income Tax calculator: Confused between new and old tax slabs regime? Use this tool by government
Income Tax calculator: Ever since Finance Minister Nirmala Sitharaman announced new income tax slabs in Budget 2020 speech, there has been a lot of confusion around it.
Income Tax calculator: Ever since Finance Minister Nirmala Sitharaman announced new income tax slabs in Budget 2020 speech, there has been a lot of confusion around it. Whom will it benefit. Who should not use the old income tax slabs and who should use the new ones, everyone was confused. So, going forward, taxpayers will have to figure out whether they get more tax benefits in the old regime or the new one. In a big relief to income tax payers and to make the task easier, the Income-Tax Department has now launched an e-calculator for individuals to estimate their tax liability if they opt for the new tax slabs.
Notably, those who choose the new system for paying their taxes, won't be able to claim deductions and exemptions. The calculator by the income tax department has a comparative table to compare taxes in the old and the new tax regime for resident individuals (financial year 2020-21).
You can check out the new income tax calculator on the official e-filing website of the department: https://www.incometaxindiaefiling.gov.in.
The portal can be used by taxpayers to file their income tax returns (ITRs). Taxpayers in three age categories of citizens (below 60 years), senior citizens (60-79 years) and super senior citizens (above 79 years) can punch in their estimated annual income from all sources, total eligible deductions and exemptions to find out how much tax they need to pay in the old and new regimes.
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According to the new regime, 5 per cent tax will be levied on an annual income between Rs 2.5 lakh to Rs 5 lakh, 10 per cent for income between Rs 5 lakh to Rs 7.5 lakh, 15 per cent for income between Rs 7.5 lakh and Rs 10 lakh, 20 per cent 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. A 30 per cent tax is charged for income over Rs 15 lakh.
Under the old regime, you get a standard deduction of Rs 50,000 and tax savings of up to Rs 1.5 lakh under Section 80C of the income tax.
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