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How do I choose my new tax regime in ITR?
The choice for selecting the tax regime is to be made before filing the income tax return of the relevant financial year. The taxpayer has to communicate the selection of tax regime by sending an intimation through Form 10IE to the income tax department before filing ITR.
Which one is better old tax regime or new tax regime?
Under the new tax regime tax is payable at lower slab rates on the income up to Rs. 15 lakh as compared to old regime. If you wish to opt for the new tax regime you have to forgo various tax deductions and exemptions otherwise available under old regime.
Which tax regime is better for 10 lakhs?
10 lakhs will pay the same tax under both the new and old regimes. This means that if you claim deductions and exemptions totaling less than Rs. 1,87,500 in a year, the new tax regime will be more beneficial to your income tax bracket.
Which income tax slab is better?
Taxpayers with annual income between RS. 5 lakhs to Rs. 10 lakhs are taxed at 20\%, under the old regime….Old vs New: A Comparison For Different Slabs.
Income tax slab for FY 2020-21 old regime | Annual Income | New Regime FY 2020-21 |
---|---|---|
20\% | Rs.5 – 7.5 lakh | 10\% |
Rs. 7.5 – 10 lakh | 15\% | |
30\% | Rs. 10-12.5 lakh | 20\% |
Rs. 12.5-15 lakh | 25\% |
Which tax regime is better for 15 lakhs?
Frequently Asked Questions ( FAQ’s )
Income Slab | Applicable Tax Rate |
---|---|
Above Rs 7.5 lakh and up to Rs 10 lakh | 15\% |
Above Rs 10 lakh and up to Rs 12.5 lakh | 20\% |
Above Rs 12.5 lakh and up to Rs 15 lakh | 25\% |
Above Rs 15 lakh | 30\% |
Which tax regime is better for above 15 lakhs?
Old vs New: A Comparison For Different Slabs
Income tax slab for FY 2020-21 old regime | Annual Income | New Regime FY 2020-21 |
---|---|---|
20\% | Rs. 7.5 – 10 lakh | 15\% |
30\% | Rs. 10-12.5 lakh | 20\% |
Rs. 12.5-15 lakh | 25\% | |
Rs. 15 and above | 30\% |
How do I choose a tax regime?
From Financial year 2020-21, taxpayers (Individuals and HUFs) has an option to choose between Old Tax regime and the new Tax Regime….
Tax Slab | Old Tax Rate | New Tax Rate |
---|---|---|
5,00,000 – 7,50,000 | 20\% | 10\% |
7,50,000 – 10,00,000 | 20\% | 15\% |
10,00,000 – 12,50,000 | 30\% | 20\% |
12,50,000 – 15,00,000 | 30\% | 25\% |
Should you opt for the new tax regime in budget 2020?
Budget 2020 has given taxpayers an option to continue with the existing tax regime or opt for the new proposed tax regime. Employees today are conflicted as to which regime they should really opt for and why?
What is the income tax rate under new tax regime?
New Tax Regime – As you can see under the new regime, income between Rs. 5 lakh and Rs. 7.5 lakh would be taxed at 10 percent, while income between Rs. 7.5 lakh to Rs. 10 lakh would be taxed at 15 percent. There is 20 percent flat on the entire slab for the existing regime.
How to choose between old and new tax regime?
Choosing between the tax regimes, might depend upon various factors such as current income level, income composition i.e. sources of income, investment appetite & saving habits among other factors. The individuals will have to work out their tax liability under the old and new tax regime before deciding which one is more beneficial.
What does the Union Budget 2020 mean for individual taxpayers?
From lower tax rates to reforms in tax assessment, the Union Budget 2020 has proposals that could offer relief to individual taxpayers. However there are conditions that you need to be aware of. Read on to know the details and how the Budget could impact you.