The Union budget 2020 has been announced by Finance Minister Nirmala Sithraman on February 01, 2020. The budget has also considered the benefits of individuals by reducing the tax rate and changing the slab rates.
Here’s a look at the new tax slabs and rates:
- 10% for income between Rs 5 lakh-7.5 lakh.
- 15% for income between Rs 7.5 lakh-10 lakh.
- 20% for income between Rs 10-12.5 lakh. 25% for income between Rs 12.5 -15 lakh.
- 30% for income above Rs 15 lakh.
However, these slab rates are optional depending upon the benefits an individual is looking to take, whether by forgoing the exemptions or allowances or by opting the new slab rates announced in the union budget 2020.
As those opting for the new tax slabs will not be able to claim deductions and exemptions for filing income tax returns.
It seems that taxpayers are in chaos in comparing that which slab rates are going to provide them higher benefits. So, help the individual taxpayers, the Income Tax Department has launched an e-calculator for taxpayers to estimate tax liability if they opt for a new tax regime.
The calculator compares taxes in the old and the new tax regimes for the financial year 2020-21. You can access the calculator on the department’s official e-filing website – incometaxindiaefiling.gov.in
The web portal is used for filing of electronic income tax returns (ITRs) by individuals and various other categories of taxpayers.
Taxpayers in three age categories as given below can estimate their tax liability:-
Normal citizen (below 60 years),
Senior citizen (60-79 years) and
Super senior citizen (above 79 years)
They are required to fill the details in estimated annual income from all sources, total eligible deductions, and exemptions to see what’ll be their total taxable income if they continue in the old regime or opt for the new one.