IT Dept launches e-calculator to compare tax under both New & Old tax Slabs

IT Dept launches e-calculator to compare tax under both New & Old tax Slabs

The Income Tax Department of India here comes with the solution of the difficulty in finding which income tax slab, old slab or new slab i.e. announced in Budget 2020 by FM Nirmala Sitharaman is better with their e-Tax Calculator for FY2020-21 launched today on their ITR filling portal.

This e-Calculator launched by Income Tax Dept will help you to compare your tax liability if you use a new tax slab without Tax exemption/Deductions or uses old tax slab under which you can claim your deductions/exemptions given under Income Tax Act.

How does it Work? This Tax Calculator for FY2020-21 will find you an estimated value of your tax liability with both Old Tax Regime & New Tax Regime so you can compare, you only have to first select Age and then type your estimated income, last your deduction and you will get your tax amount as shown in the given below image.
Compare tax under both New & Old tax Slabs

New IncomeTax Regime 

The New Income tax regime is optional for taxpayers and there is quite a difference between both Old and New Income tax rates for particular income which are:

  • Rs 5 Lakh: No Tax
  • Rs 5 to 7.5 Lakh: 10%
  • Rs 7.5 to 10 Lakh: 15% tax
  • Rs 10 to 12.5 Lakh: 20% tax  
  • Rs 12.5 Lakh to 15 Lakh: 25% tax
  •  Rs 15 Lakh: 30% tax 

70 deductions are removed in a new tax regime which taxpayer cannot claim as a deduction but the Standard deduction of Rs 50,000 is allowed in both cases or slabs.

(Inputs/Source: GoogleNews)

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