Income tax slab as updated in budget

Income tax slab as updated in budget

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Slab and rate of interest
Individual rate
2.5 lakh to 5.00 lakh – 5%
5 lakh to 7.50 – 10%
7.50 lakh to 10 lakh @ 15%
10 lakh to 12.50 lakh @ 20%

12.50 lakh to 15.00 lakh @ 25%
Above 15 lakh @ 30 %

Subject to certain exemptions been removed

If you wish to avail deduction old rate can be availed.
So it would be optional.

Edit: 2.5 lakh to 5 lakh would be at 5%

The condition listed at (iva) above, means that the individual or HUF opting for taxation under the newly inserted section
115BAC of the Act shall not be entitled to the following exemptions/ deductions:
(i) Leave travel concession as contained in clause (5) of section 10;
(ii) House rent allowance as contained in clause (13A) of section 10;
(iii) Some of the allowance as contained in clause (14) of section 10;
(iv) Allowances to MPs/MLAs as contained in clause (17) of section 10;
(v) Allowance for income of minor as contained in clause (32) of section 10;
(vi) Exemption for SEZ unit contained in section 10AA;
(vii) Standard deduction, deduction for entertainment allowance and employment/professional tax as contained in
section 16;

(viii) 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);
(ix) Additional deprecation under clause (iia) of sub-section (1) of section 32;
(x) Deductions under section 32AD, 33AB, 33ABA;
(xi) Various deduction for donation for or expenditure on scientific research contained in sub-clause (ii) or sub-clause
(iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35;
(xii) Deduction under section 35AD or section 35CCC;
(xiii) Deduction from family pension under clause (iia) of section 57;
(xiv) Any deduction under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA,
80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc). However, deduction under
sub-section (2) of section 80CCD (employer contribution on account of employee in notified pension scheme) and
section 80JJAA (for new employment) can be claimed.
As many allowances have been provided through notification of rules, it is proposed to carry out amendment of
the Income-tax Rules, 1962 (the Rules) subsequently, so as to allow only following allowances notified under section 10(14) of
the Act to the Individual or HUF exercising option under the proposed section:
(a) Transport Allowance granted to a divyang employee to meet expenditure for the purpose of commuting between
place of residence and place of duty
(b) Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office;
© Any Allowance granted to meet the cost of travel on tour or on transfer;
(d) Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his
normal place of duty.
It is also proposed to amend rule 3 of the Rules subsequently, so as to remove exemption in respect of free food and
beverage through vouchers provided to the employee, being the person exercising option under the proposed section, by the
employe

Deal Wiki

  • Last updated by: admin

As shared by one dimer:

https://i.imgur.com/Sd7Cz...ng

https://cdn0.desidime.com/attachments/photos/604090/medium/1116290image.png?1580623727

https://cdn0.desidime.com/attachments/photos/604091/medium/1116290jttzwyA.jpg?1580623732

46 Comments  |  
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Deal Subedar
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What was the previous?

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P_A_N_K_A_J wrote:

What was the previous?

New optional income tax rates for individuals who forego exemptions:
10% for RS 5-7.5 lakh income
(20% now)
15% for RS 7.5-10 lakh
(20% now)
20% for 10-12.5 lakh
(30% now)
25% for RS 12-15 lakh
(30% now)
No change for more than RS 15 lakh
No tax on upto Rs 5 lakh

L4ud4kxe 400x400
Deal Subedar
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achha he mera income 0 he. koi tax ka tension nhi. 100% loge tbhi 0 hi hoga

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Iron-Man wrote:

New optional income tax rates for individuals who forego exemptions:
10% for RS 5-7.5 lakh income
(20% now)
15% for RS 7.5-10 lakh
(20% now)
20% for 10-12.5 lakh
(30% now)
25% for RS 12-15 lakh
(30% now)
No change for more than RS 15 lakh
No tax on upto Rs 5 lakh

Don’t compare like this. In old regime you can claim exemptions but in the new you can not.

L4ud4kxe 400x400
Deal Subedar
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without exemptions

5% for 2.5- 5 lakh
10% for RS 5-7.5 lakh income
15% for RS 7.5-10 lakh
20% for 10-12.5 lakh
25% for RS 12.5-15 lakh
30% for >RS 15 lakh

Glitterimagescartoons55
Deal Cadet
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so bad . with exemptions i was paying 1 lakh per annum. Without exemptions I would be paying approx. 1.5 Lakh per annum.
This new regime is totally not useful.

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priyatnl wrote:

so bad . with exemptions i was paying 1 lakh per annum. Without exemptions I would be paying approx. 1.5 Lakh per annum.
This new regime is totally not useful.

You can use older system..you have choice…but yes this makes system complex

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priyatnl wrote:

so bad . with exemptions i was paying 1 lakh per annum. Without exemptions I would be paying approx. 1.5 Lakh per annum.
This new regime is totally not useful.

Useless and complex. Every individual will have to calculate which is good for him.

Cropped6180125751458686699
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sb007 wrote:

Useless and complex. Every individual will have to calculate which is good for him.

Good for professionals fee joy

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Deal Lieutenant
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stella.dmonte654 wrote:

@admin post has been updated. Note 2.5 lakh to 5 lakh would be 5% only
So image uploaded is incorrect .

Updated slab rate image https://ibb.co/K...hv

2.5l to 5l is nil under both regime
Edit: i heard her say no tax till 5l, but what she meant was a rebate that was introduced in last budget (if income<5l = no tax, if income>5l= 5% on 2.5 – 5l bracket)

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Awake wrote:

2.5l to 5l is nil under both regime
Edit: i heard her say no tax till 5l, but what she meant was a rebate that was introduced in last budget (if income<5l = no tax, if income>5l= 5% on 2.5 – 5l bracket)

Exactly
For income upto 5 lakh exempt
Above 5 lakh income holders would have to pay 5%

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Post updated with detailed wording of what has to been taken away for reduced slab

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Deal Cadet
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Awake wrote:

2.5l to 5l is nil under both regime
Edit: i heard her say no tax till 5l, but what she meant was a rebate that was introduced in last budget (if income<5l = no tax, if income>5l= 5% on 2.5 – 5l bracket)

Rebate not applicable for self employed itr 4

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Deal Lieutenant
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bornsmart wrote:

Rebate not applicable for self employed itr 4

No such thing!

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Deal Lieutenant
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A person having salary and interest income of 12.50 Lakhs and saving 2 Lakh under 80C, getting 10K in savings interest, paying mediclaim of 25K and HBA loan interest of 2 Lakhs per year was earlier paying 78.5 K tax. Under the new formula the total tax will be 1.30 Lakh. tax payable nearly doubles.

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Iron-Man wrote:

New optional income tax rates for individuals who forego exemptions:
10% for RS 5-7.5 lakh income
(20% now)
15% for RS 7.5-10 lakh
(20% now)
20% for 10-12.5 lakh
(30% now)
25% for RS 12-15 lakh
(30% now)
No change for more than RS 15 lakh
No tax on upto Rs 5 lakh

But OP mentioned 5% upto 5 lacs. How come you are saying no tax? Can you elaborate?

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Awake wrote:

Tax audit ki limit to ghta die unamused

More details bro?

Slide2
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stella.dmonte654 wrote:

Exactly
For income upto 5 lakh exempt
Above 5 lakh income holders would have to pay 5%

This thread is the most misleading and confusing ever on DD. Why can’t you clearly mention previous and new rates?
It’s interesting to see what lengths people can go for self promotion …

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Deal Lieutenant
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jambui wrote:

More details bro?

Tax audit only if sale > 5cr as against 1cr but this limit applies if u have <5% cash

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cocay wrote:

This thread is the most misleading and confusing ever on DD. Why can’t you clearly mention previous and new rates?
It’s interesting to see what lengths people can go for self promotion …

Well i have shared before and after slab and requested @admin to update in wiki
https://ibb.co/K...hv

Confusing is what government has done.
If your income is upto 5 lakh you are exempt is both case.
If above 5 lakh so 2.5 lakh to 5. Lakh is charged @ 5%

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cocay wrote:

This thread is the most misleading and confusing ever on DD. Why can’t you clearly mention previous and new rates?
It’s interesting to see what lengths people can go for self promotion …

What is self promotion.
Am i selling something? Am i giving referral? Am i earning tax out of it?

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stella.dmonte654 wrote:

Well i have shared before and after slab and requested @admin to update in wiki
https://ibb.co/K...hv

Confusing is what government has done.
If your income is upto 5 lakh you are exempt is both case.
If above 5 lakh so 2.5 lakh to 5. Lakh is charged @ 2.5%

Thanks. Have updated.

@cocay – If you think you have more information, share it. There is no self-promotion one can do about it smile

Slide2
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stella.dmonte654 wrote:

Well i have shared before and after slab and requested @admin to update in wiki
https://ibb.co/K...hv

Confusing is what government has done.
If your income is upto 5 lakh you are exempt is both case.
If above 5 lakh so 2.5 lakh to 5. Lakh is charged @ 2.5%

Somewhere in your thread 2.5l to 5l is mentioned as not chargeable, somewhere it is mentioned at 5% and now you are saying it is 2.5%.
….
Which one should we believe?
Can’t you read from the source and then create thread with correct info instead of blaming admin and wiki?

Missing