Income Tax Calculator ; Format for Financial Year 2020-21 / Assessment Year 2021-22

Income Tax Calculator ; Format for Financial Year 2020-21 / Assessment Year 2021-22

The Finance Minister has proposed to bring a new and simplified personal income tax regime, wherein income tax rates will be significantly reduced for the individual taxpayers who forego certain deductions and exemptions, however the same is options to individual. Hence the assesses have to review the benefits to take call on which option to be exercise. Please review your tax plans for the FY 2020-21.

As per New Tax Payers Regime a taxpayer can now choose to opt for the new tax slab for FY 2020-21 AY 2021-22

Income Tax Slab for New FY 2020-21     New Tax Rat   Existing Tax Rate
Upto Rs 2.5 Lakhs                                         Exempt     Exempt
Rs 2.5- Rs 5 Lakhs                                         5%               5%
Rs 5- Rs 7.5 Lakhs                                        10%               20%
Rs 7.5 -Rs 10 Lakhs                                 15%              20%
Rs 10 - Rs 12.5 Lakhs                                 20%              30%
Rs 12.5 - Rs 15 Lakhs                                 25%              30%
Above Rs 15 Lakhs                                 30%               30%

If you go by new slab rates as announced in today's Budget then, you will not be eligible to claim the following tax benefits:

Leave travel concession as contained in clause (5) of section 10;

House rent allowance as contained in clause (13A) of section 10;

Some of the allowance as contained in clause (14) of section 10;

Standard deduction of Rs. 50,000 u/s 16;

Employment/professional tax deduction as contained in section 16;

Interest under section 24 in respect of self-occupied or vacant property referred to in sub-section (2) of section 23. (Loss under the head income from house property for rented house shall not be allowed to be set off under any other head and would be allowed to be carried forward as per extant law);

Any deduction under chapter VI-A ; [except 80CCD(2) - NPS Contribution by the employer]

Others as prescribed

The option shall be exercised for every previous year where the individual or the HUF has no business income, and in other cases the option once exercised for a previous year shall be valid for that previous year and all subsequent years.

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