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Budget 2020: Comparison Of Tax Outgo In New And Old Tax Regime

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Finance Minister Nirmala Sitharaman on Saturday proposed new personal income tax slabs in the Union Budget 2020. Under the new tax regime, 7 income slabs have been introduced and tax rates have been slashed on income up to Rs 15 lakh. The new tax regime will, however, be optional. This means taxpayers will be given the choice to either continue with the old tax regime with exemptions or opt the new reduced tax rates without exemptions.

 
Budget 2020: Comparison Of Tax Outgo In New And Old Tax Regime

According to the proposal, in the new tax regime, substantial tax benefit will accrue to a taxpayer depending upon exemptions and deductions claimed by him.

Here's a difference in tax under old and new regime on same levels of income for individuals below 60 years of age:

Income slabTax out go in old regimeTax out go in new regime without exemption
Income up to Rs. 7.5 lakhsNo tax liability assuming deductions are being availed
If no deductions are availed more tax out go would be thereRs. 39000 payable in taxes
Rs. 10 lakhRs. 85800 if deductions are availed
Rs. 78000
Rs. 12.5 lakhsRs. 148,200 if deductions are availedRs. 130000
Rs. 15 lakhsRs. 2.73 lakh if not availing deduction
Rs. 1.52 lakh in case he is availing deductionRs. 1.95 lakh
Rs. 20 lakh
If deductions are availed Rs. 3.82 lakhRs. 3.51 lakhs

Read more about: income tax budget 2020
Story first published: Saturday, February 1, 2020, 18:54 [IST]
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