Income Tax Slabs under new tax regime
From the FY 2020-21, a new tax regime is available for individuals and HUFs with lower tax rates and zero deductions/exemptions. Individuals and HUF have the option to choose the new regime or continue with the old regime.The new tax regime is optional and the choice should be made at the time of filing the ITR. If the old regime is continued than all the deductions/exemptions as available can be availed by the taxpayer. The income tax slabs under the new tax regime are:
|New regime slab rates||Existing regime slab rates|
|Income from Rs 2.5 lakh to Rs 5 lakh||5%||Income from Rs 2.5 lakh to Rs 5 lakh||5%|
|Income from Rs 5 lakh to Rs 7.5 lakh||10%||Income from Rs 5 lakh to Rs 10 lakh||20%|
|Income from Rs 7.5 lakh to Rs 10 lakh||15%||Income above Rs 10 lakh||30%|
|Income from Rs 10 lakh to Rs 12.5 lakh||20%|
|Income from Rs 12.5 lakh to Rs 15 lakh||25%|
|Income above Rs 15 lakh||30%|
Most of the deductions like deductions and exemptions are not allowed if the taxpayers opts for the New Tax regime. However he exemptions and deductions available under the new regime are:
- Transport allowances in case of a specially-abled person.
- Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment.
- Any compensation received to meet the cost of travel on tour or transfer.
- Daily allowance received to meet the ordinary regular charges or expenditure you incur on account of absence from his regular place of duty.