Income Tax Calculator (Old Vs new)

In the Union Budget of 2020, Finance Minister Nirmala Sitharaman has introduced a new scheme for Individual and HUF taxpayers to pay their taxes either under old regime or a new regime of taxation has been introduced. The Individual/ HUF will have an option to choose between the two tax slabs whichever is beneficial. 

Under the old scheme, there are various deductions i.e. under Chapter VIA, standard deduction from Salaries, House Property, Interest on housing loan, 80G deductions etc. All the deductions have been done away with under New Tax slab in which new rates and tax slabs have been prescribed. 

Here we look at Tax slabs and tax rates under both Schemes : 

1. Old Tax Regime

Basic Exemption Limit                   Rs.2.5 Lakhs 

Income Range                              Rate of Tax

2.5 lakhs to 5 lakhs                              5%

5  lakhs to 10 lakhs                             20%

Above 10 lakhs                                   30% 

All the Deductions will be available under old Scheme i.e. Std. Deduction , deductions under Chapter VIA, 80G and other 80 deductions, Std. Deduction from House Property, interest on housing loan etc. 

2. New Tax Regime     

Basic Exemption Limit                 Rs.2.5 lakhs 

Income Range                              Rate of Tax

2.5 lakhs to 5 lakhs                          5%

5 lakhs to 7.5 lakhs                        10%

7.5 lakhs to 10 lakhs                      15%

10 lakhs to 12.5 lakhs                    20%

12.5 lakhs to 15 lakhs                    25%

Above 15 lakhs                              30% 

No deductions will be allowed under this Regime which are available under old Regime

If you want to calculate your tax in both the scheme and then take the decision as to which option is to be exercised, we are providing the calculator.