Old vs New Tax Slab Regime

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Income

F.Y. 2019-20
F.Y. 2020-21
Slab option 1
(With Exemptions)
F.Y. 2020-21
Slab option 2
(Without Exemptions)
Income from Salaries
Amount
Amount
Amount
Less: Allowances & Exemptions
Amount
Amount
Amount
Income from Business
Amount
Amount
Amount
Income from House Property
Amount
Amount
Amount
Income from Other Sources
Amount
Amount
Amount

Deductions

F.Y. 2019-20
F.Y. 2020-21
Slab option 1
(With Exemptions)
F.Y. 2020-21
Slab option 2
(Without Exemptions)
Basic Deductions (80C)
Amount
Amount
Amount
Medical Insurance Premium (80D)
Amount
Amount
Amount
Interest from Savings (80TTA)
Amount
Amount
Amount
Other Deductions
Amount
Amount
Amount
Standard Deduction / Allowance
Amount
Amount
Amount

Budget Impact

F.Y. 2019-20
F.Y. 2020-21
Slab option 1
(With Exemptions)
F.Y. 2020-21
Slab option 2
(Without Exemptions)
Basic Tax
Amount
Amount
Amount
Rebate u/s 87a
Amount
Amount
Amount
Surcharge
Amount
Amount
Amount
Education Cess
Amount
Amount
Amount
Total Tax Liability
Amount
Amount
Amount
Impact of Budget 2020 compared to F.Y. 2019-20
Amount/-
Amount/-


FAQs on the Old Vs New Tax Regime

Q- What is the new tax slab proposed under Budget 2020?

Ans. As per the proposals made in Budget 2020, the new tax slab would be as follows –

Taxable Income level Applicable tax rate
Up to INR 250,000 Nil 
INR 250,001 to INR 500,000 5%
INR 500,001 to INR 750,000 10%
INR 750,001 to INR 10,00,000 15%
INR 10,00,001 to INR 12,50,000 20%
INR 12,50,001 to INR 15,00,000 25%
INR 15,00,001 and above 30%

Q- To whom would the new tax slab impact?

Ans. The new tax slab would be applicable for Individuals and Hindu Undivided Families.


Q- Is it mandatory to use the new tax slab rates?

Ans. No, the new tax slab rates are optional. You can use the old tax slab rates or the new tax slab rates and calculate your tax liability.


Q- Can I avail of deductions under the new tax regime?

Ans. No, under the new tax regime no deductions or exemptions can be claimed. If you use the new tax regime, the total income would be subject to tax without deducting any deductions except deduction u/s 80CCD(2) and 80JJAA.


Q- Are NPS contributions eligible for deductions under the new tax regime?

Ans. If you use the new tax regime, only two deductions can be claimed from your taxable income. These deductions are deduction under Section 80 CCD (2) for your employer’s contribution to the NPS scheme and deduction under Section 80JJAA Deduction in respect of employment of new employees.


Q- What other tax changes have been proposed in the new Budget 2020?

Ans. The new Budget 2020 has removed Dividend Distribution Tax levied on companies. Instead, the dividend that you earn from shares & mutual funds would be added to your taxable income and taxed at your income tax slab rates.


Q- Is standard deduction from salary available under the new tax slab?

Ans. No, you cannot avail the benefit of standard deduction from your salary if you choose the new income tax regime.


Q- Is standard deduction from salary available under the new tax slab?

Ans. No, you cannot avail the benefit of standard deduction from your salary if you choose the new income tax regime.


Q- Is interest paid on home loan exempt in the new tax regime?

Ans. If you have a home loan for a house property which has been rented out then the interest paid on such home loan can be deducted from the rental income even under the new tax regime.However, excess interest over the rental income cannot be set off from income of any other head. Also, interest payment of home loan of self occupied property will not be eligible for the deduction.


Q- How many exemptions are available under the Income Tax Act, 1961?

Ans. Under the Income Tax Act, 1961, about 100 exemptions are available which help in reducing your taxable income. However, in Budget 2020, about 70 of such exemptions/deductions have been removed from the Act leaving out only 30 available exemptions which you can use if you file your taxes under the new tax regime.


Q- From when would the new tax slab become applicable?

Ans. The new tax slab would become operational from the financial year 2020-21, i.e. for the assessment year 2021-22.