Income Tax Slab for 2020-21; key Budget 2020 takeaways: Revised tax rate, income tax calculator

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New Delhi | Updated: February 2, 2020 12:03:11 am

New Income Tax Slab 2020-21, Income Tax Slab Old vs New: A new income tax regime has been announced by Finance Minister Nirmala Sitharaman. Under the announced income tax regime, taxpayers will get certain tax benefits if they forego exemptions.

New Income Tax Slab 2020-21, Income Tax Slab Old vs New Live UpdatesIncome Tax Budget 2020: Financial Express Online has a technologically advanced, user-friendly income tax calculator. You can check your income tax payment amount

New Income Tax Rates, Revised Income Tax Slab for FY 20-21 takeaways: New income tax slabs and rates have been introduced by FM Nirmala Sitharaman on the personal tax front in Union Budget 2020 speech in Lok Sabha. These new income tax slabs and rates however came with a catch, the taxpayer will now have to forego certain exemptions. Personal income tax rates along with important sections such as Section 80C, deductions under Chapter VIA, standard deduction are critical elements that are watched closely by taxpayers.

Financial Express Online has a technologically advanced, user-friendly income tax calculator. You can check your income tax payment amount based on the current personal tax rates. The income tax calculator will be updated if there is a change in the Income Tax rates in Budget 2020.

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Live Blog

New Income Tax Rates: Budget 2020 New Income Tax Slab Rates for FY 20-21

Highlights

    17:40 (IST)01 Feb 2020
    New Income Tax Rates Live: Budget 2020 Income Tax holiday

    Stating that the government provides tax holiday on profits earned by developers of affordable housing project approved till March 2020, Sitharaman said the government proposes to extend the date of approval of affordable housing projects for availing this tax holiday by one more year. This tax holiday is being provided under the section 80-IBA of the Income Tax Act. It was applicable on the project approved by the competent authority during the period from June 1, 2016 to March 31, 2020, which now has been extended by a year.

    17:35 (IST)01 Feb 2020
    New Income Tax Rates Live: Will Income Tax slab tweaks help?

    There are several tweaks in income tax slabs. This should help boost consumer confidence and demand, raising hopes of for growth revival, Kotak Mahindra Bank's Upasna Bhardwaj said.

    17:08 (IST)01 Feb 2020
    New Income Tax Rates Live: Income Tax Act to be amended

    The Modi government will amend Income Tax Act to allow faceless appeals against tax orders on lines of faceless assessment, said Finance Minister Nirmala Sitharaman

    16:56 (IST)01 Feb 2020
    Budget 2020 Income Tax for common man

    "Budget has put more disposable income in the hands of the common man by the rationalisation of the personal income tax slabs. Secondly, the removal of the dividend distribution tax is a welcome move and has great benefit for all those mutual fund investors who rely on dividend income from their mutual fund investments," Mahindra Mutual Fund MD and CEO Ashutosh Bishnoi said.

    16:48 (IST)01 Feb 2020
    New Income Tax Rates Live: Income Tax Exemptions for salaried class

    The new income tax slab rates came as a bad news for Central Government Employees, Private Sector workers with big pay cheques! Read

    16:37 (IST)01 Feb 2020
    New Income Tax Rates Live: Revised Income Tax Slab for AY 2020-21

    Under the proposed I-T slab, annual income upto Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent. Those earning between Rs 10 and 12.5 lakh will pay tax at the rate of 20 per cent, while those between Rs 12.5 and Rs 15 lakh will pay at the rate of 25 per cent. Income above Rs 15 lakh will be taxed at 30 per cent.

    16:23 (IST)01 Feb 2020
    New Income Tax Rates Live: Proposed Income Tax Slabs 2020

    No tax for income up to annual income of Rs five lakh. 10 per cent income tax rate for annual income between Rs 5 -Rs 7.5 lakh. 15 per cent income tax rate for income between Rs 7.5 lakh to Rs 10 lakh. 20 per cent income tax rate for annual income between Rs 10 - Rs 12.5 lakh. 25 per cent income tax rate for annual income between Rs 12.5 lakh  to Rs 15 lakh. Incomes above 15 lakhs remain at 30 per cent

    16:19 (IST)01 Feb 2020
    New Income Tax Rates Live: Revised Income Tax Rates 2020

    No tax for income up to five lakhs. 10% income tax rate for income between 5 -7.5 lakhs. 15% income tax rate for income between 7.5-10 lakhs. 20% income tax rate for income between 10 -12.5 lakhs. 25% income tax rate for income between 12.5-15 lakhs. Incomes above 15 lakhs remain at 30%

    16:07 (IST)01 Feb 2020
    New Income Tax Rates Live: Old Tax Slab

    Individual who are below age 60, currently, total income up to Rs 2.5 lakh is exempted from tax. For income between Rs 2.5 lakh and Rs 5 lakh, one needs to pay tax @ 5 per cent. On higher income between Rs 5 lakh and Rs 10 lakh, one needs to pay tax @ 20 per cent, while for income above Rs 10 lakh, one needs to pay tax @ 30 per cent. One also needs to pay cess of 4 per cent on the amount of tax.

    Individual who are between 60 and 80 years, currently, total income up to Rs 3 lakh is exempted from tax. For income between Rs 3 lakh and Rs 5 lakh, one needs to pay tax @ 5 per cent. On higher income between Rs 5 lakh and Rs 10 lakh, one needs to pay tax @ 20 per cent, while for income above Rs 10 lakh, one needs to pay tax @ 30 per cent. One also needs to pay cess of 4 per cent on the amount of tax.

    Individual who are above age 80, currently, total income up to Rs 5 lakh is exempted from tax. For income between Rs 5 lakh and Rs 10 lakh, one needs to pay tax @ 20 per cent. On higher-income above Rs 10 lakh, one needs to pay tax @ 30 per cent, while for income above Rs 10 lakh, one needs to pay tax @ 30 per cent. One also needs to pay cess of 4 per cent on the amount of tax.

     
     
    16:05 (IST)01 Feb 2020
    New Income Tax Rates Live: Income Tax Slab Old vs New

    Modi government has announced a new income tax regime. What is good for you? here is a comparison between Income Tax Slab Old vs New

    15:54 (IST)01 Feb 2020
    Income Tax 2020 in New Budget: New Income Tax Rates

    Finance Minister Nirmala Sitharaman has announced income tax structure for taxpayers. Under the proposed I-T slab, annual income upto Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent.

    15:36 (IST)01 Feb 2020
    Income Tax in New Budget Live: Exemptions in Income Tax

    Following the new income tax regime in finance budget 2020, taxpayers with annual income upto Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will need to pay 5 per cent tax. However, there a rebate under which if your annual income is less than Rs 5 lakh, you won't require to pay any income tax.

    15:26 (IST)01 Feb 2020
    Income Tax in New Budget Live: New Income Tax calculator

    With Union Finance Minister Nirmala Sitharaman announcing a brand new income tax regime for salaried class and tax-payers, you  must be eager to check how much income tax payment you need to make. Financial Express Online has an income tax calculator.

    15:21 (IST)01 Feb 2020
    Income Tax in New Budget Live: Income tax exemptions, 80c deduction, 80c limit

    Under the existing Income Tax structure, taxpayers were entitled for tax exemptions and deductions under Section 80C and 80D housing rent allowance. The current income tax regime allows deduction for professional tax, entertainment allowance and interest on self occupied or vacant property. However, new income tax regime will not allow those benefits.

    15:13 (IST)01 Feb 2020
    Income Tax in New Budget Live: Income Tax slab old vs new

    The new income tax regime announced by Union Finance Minister has a benefits for taxpayers. However, salaried class must take note that to avail lower Income Tax rates, individuals need to forego exemptions under Section 80C, 80D, LTC, HRA among others.

    15:11 (IST)01 Feb 2020
    Great budget for the common man and the middle class?

    "This is a great budget for the common man and the middle class. Those earnings up to Rs 5 Lakhs pay no tax. A person with income between Rs 5 - 7.5 Lakhs pays tax at 10%. From Rs 7.5 Lakhs to Rs 10 Lakhs it’s a reduced rate of 15% against the current 20%. For Rs 10-12.5 Lakhs the new tax rate is 20%. For Rs 12.5 Lakhs to Rs 15 Lakhs the new rate is 25% against the earlier 30%. There’s no change for those earning above Rs 15 Lakhs a year," says C.S.Sudheer, CEO IndianMoney.Com.

    "Common taxpayers desperately needed a personal income tax cut. The Finance Minister has granted this with the income tax rate cut. This was a must after the Corporate Tax Rate cut from 25% to 15%. Budget 2020 has given tax payers the option to choose between the existing income tax regime and new income tax slabs minus 70 tax exemptions. Choosing the tax regime (Old or New) depends on income composition and investments made. This means if you have availed a long term life insurance plan, you would have to pay the premium and claim tax benefit on it," he added.

    14:37 (IST)01 Feb 2020
    Will taxpayers benefit with new regime?

    Archit Gupta, Founder, and CEO, ClearTax, says: "The complex tax regime for taxpayers with the slabs rejig. With the optional new regime, taxpayers will have to evaluate what works better. Those committed to long term saving and investing via 80C may be discouraged and this may likely demotivate taxpayers from tax-saving linked investing."

    DDT removal is good as it increases dividends received in the hands of the taxpayer - however, such receipts to now are taxable in their hands. Those above 20% tax slab - will now face more tax on their dividend income.

    "We welcome deferment of perquisite taxation - now taxation at the time of 'exercise' deferred to 5 years or till they leave the company or till they sell their shares - whichever is earlier. This will be a key plank for hiring quality resources."

    14:13 (IST)01 Feb 2020
    Income Tax in Budget Live: New Income Tax Rates guide

    • 10% income tax rate for income between 5 -7.5 lakhs
    • 15% income tax rate for income between 7.5-10 lakhs
    • 20% income tax rate for income between 10 -12.5 lakhs
    • 25% income tax rate for income between 12.5-15 lakhs
    • Incomes above 15 lakhs remain at 30%
    • No tax for income up to five lakhs

    13:54 (IST)01 Feb 2020
    New income tax calculator, new slab rate of income tax, income tax slab 20-21, income tax rates 2020-21

    A taxpayer having an annual income of Rs 15 lakh and not availing any deductions will now pay Rs 1.95 lakh tax in place of existing Rs 2.73 lakh, said FM Nirmala Sitharaman.

    13:45 (IST)01 Feb 2020
    Income Tax in New Budget Live: Income Tax changes under Modi government

    The income tax slabs have had a complete makeover since 2014 when the Modi government first came to power. The then Finance Minister late Arun Jaitley presented the first budget of the Modi government in July 2014 when the exempted income was hiked from Rs 2 lakh to 2.5 lakh. The easing of income tax slabs has been on a continuous spree since then with more benign tax rates for the middle class. The tax slabs in the next budget presented by Jaitley in 2015 remained unchanged, however there were many incentives offered in the second budget. A corpus of Rs 50000, invested in the National Pension Scheme (NPS), was offered as an additional deduction from the taxable income. Wealth tax on the super rich was also abolished in the same year.

    In the same breath, tax rebate under section 87 A was increased from Rs 2000 to 5000 for people up to the income of Rs 5 lakh in the budget presented by Arun Jaitley in the year 2016. Rent deduction from the taxable income was also hiked sizeably to Rs 60,000 a year from Rs 24,000 previously. Unlike the variation seen in the tax policy for the super rich, the Modi government consistently moved towards rationalisation of tax rate for the middle class in 2017 as well. The flat rate of 10% tax on the income above 2.5 lakh and up to Rs 5 lakh was reduced to 5%. The cut resulted in the saving of Rs 12,500 a year for the payees.

    Biding its time for the bumper announcement next year in the election year of 2019, the Modi government in 2018 settled with offering standard reduction of Rs 40,000 along with raising the medical expenditure reduction from the taxable income for senior citizens to Rs 50,000. In the interim budget presented by incharge Finance Minister Piyush Goyal the government loosened the string by the highest margin so far. Going full throttle, Piyush Goyal announced the rebate of Rs 12,500 to all the payees up to the taxable income of Rs 5 lakh. The announcement without changing the tax slabs benefited a large pool of taxpayers. In the last budget presented by Finance Minister Nirmala Sitharaman, the government did not alter the tax slabs and went ahead with the slabs presented by Goyal.

    13:40 (IST)01 Feb 2020
    Income Tax in New Budget Live: Good news for home buyers

    In a cheer for home buyers, the central government has extended additional Rs 1.5 lakh benefit on interest paid on housing loan till March, 2021

    13:37 (IST)01 Feb 2020
    Income Tax in New Budget Live: Aadhaar-PAN mechasim

    In Budget 2020, Union Finance Minister Nirmala Sitharaman has said that the Modi government will launch with an aim to further ease process of allotment of Personal Account Number (PAN) on the basis of Aadhaar

    13:34 (IST)01 Feb 2020
    Income Tax Slab for AY 2020-21: Lower tax rates with certain exemptions!

    Rejig in the tax rates by introduction of New simplified personal tax regime with lower tax rates by excluding certain exemptions and deductions: Spokesperson Deloitte India

    13:29 (IST)01 Feb 2020
    Income Tax Slab for AY 2020-21: New tax regime for individuals is optional

    New tax regime for individuals is optional. Calculations would be key for cost-benefit analysis. But definitely, it does not look very simple, as stated: Shailesh Kumar, Director, Nangia Andersen Consulting!

    13:29 (IST)01 Feb 2020
    Income Tax Slab for AY 2020-21: Income Tax structure becomes more complicated?

    Personal income tax which should have been simplified, seems to have been made more complicated. The fine print will be very crucial to understand the exact economics and actual impact. Pre filed form along with optional scheme does not seem optically fine: Nitin Narang, Director - Nangia Andersen Consulting

    13:26 (IST)01 Feb 2020
    Income Tax in New Budget Live: Income Tax exemptions for affordable housing continues

    Income Tax exemptions for affordable housing has been extended for one year, Nirmala Sitharaman.

    13:22 (IST)01 Feb 2020
    Income Tax in New Budget Live: Personal income tax rates

    "Personal income tax which should have been simplified, seems have been complicated. The fine print will be very crucial to understand the exact economics and actual impact. Pre filed form along with optional scheme does not seem optically fine," Nitin Narang, Director - Nangia Andersen Consulting

    13:19 (IST)01 Feb 2020
    Income Tax in New Budget Live: FM says income tax cut to bring relief

    Union Finance Minister Nirmala Sitharaman said income tax rate cuts have made for those who forego reliefs and exemptions.

    13:15 (IST)01 Feb 2020
    Income Tax in New Budget Live: Income Tax slabs in new budget

    If we put this in a simple manner, if your taxable annual income is 15 lakh, then tax outgo will be Rs 1,95,000. However, anything above that will be taxable at 30 per cent

    13:11 (IST)01 Feb 2020
    Budget highlights, news on Income tax: New income tax slab for Rs 12.5 lakh-Rs 15 lakh

    Budget highlights, news on Income tax: An individual earning between Rs 12.5 lakh to Rs 15 lakh will now be taxed at a reduced income tax rate of 25% as compared to the earlier 30%

    13:11 (IST)01 Feb 2020
    Budget highlights, news on Income tax: New income tax slab for Rs 10 lakh-Rs 12.5 lakh

    Budget highlights, news on Income tax: An individual earning between Rs 10 lakh to Rs 12.5 lakh will now be taxed at a reduced income tax rate of 20% as compared to the earlier 30%

    13:11 (IST)01 Feb 2020
    Budget highlights, news on Income tax: New income tax slab for Rs 7.5 lakh-Rs 10 lakh

    Budget highlights, news on Income tax: An individual earning between Rs 7.5 lakh to Rs 10 lakh will now be taxed at a reduced income tax rate of 15% as compared to the earlier 20%.

    13:10 (IST)01 Feb 2020
    Budget highlights, news on Income tax: New income tax slab for Rs 5 lakh-Rs 7.5 lakh

    Budget highlights, news on Income tax: An individual earning between Rs 5 lakh to Rs 7.5 lakh will now be taxed at a reduced income tax rate of 10% as compared to the earlier 20%.

    13:08 (IST)01 Feb 2020
    Budget highlights, news on Income tax: Big income tax relief announced!

    Finance Minister Nirmala Sitharaman has announced whole new revamped income tax slabs with significant relief for individuals earning up to rs 15 lakh per annum

    13:06 (IST)01 Feb 2020
    Income Tax in New Budget Live: New Tax regime

    Union Finance Minister Nirmala Sitharaman has announced a new tax regime for taxpayers in Budget 2020

    13:04 (IST)01 Feb 2020
    Budget highlights, news on Income tax: Simplification of taxation on cards

    Budget highlights, news on Income tax: FM Sitharaman highlighted the need for simplification the income tax structure

    12:57 (IST)01 Feb 2020
    Income Tax in New Budget Live: Budget news of Income Tax

    In Union Budget 2020 India speech, Finance Minister Nirmala Sitharaman said proceeds from taxes on medical devices would be used to support setting up of hospitals.

    12:55 (IST)01 Feb 2020
    Income Tax in New Budget Live: Budget latest news income tax

    In Budget 2020, Union Finance Minister Nirmala Sitharaman has said that Tax payer charter will be part of statute.

    12:49 (IST)01 Feb 2020
    Income Tax in New Budget Live: Auto enrolment in universal pension coverage

    In her Finance Budget 2020 speech, Finance Minister Nirmala Sitaraman has announced that auto enrolment will be infused in universal pension coverage.

    12:49 (IST)01 Feb 2020
    Income Tax in New Budget Live Nangia Andersen Insta Analysis:Depositors money completely safe!

    Budget 2020 Live Nangia Andersen Insta Analysis: Depositors money completely safe and robust monitoring mechanism to monitor financial health of all scheduled commercial banks: Shailesh Kumar, Director, Nangia Andersen Consulting!

    Follow Financial Express Online Blog for latest Budget 2020 Income Tax related updates.
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