50,000), the tax will remain the same as the old one. 1.5 lakhs u/s 80C and investment in NPS of Rs. If a tax-payer claims a deduction of Rs.The above-mentioned new rates are without any deductions under different sections of Chapter VI-A.Below is the table with the old and new tax rate as applicable on the annual income: Annual Income (Rs.) The exemption is given to people earning up to Rs. And what are the exemptions that are taken off the budget. Let’s discuss how the new and old tax slab rates differ for each income group. Simply put, if you are a salaried taxpayer then you will have to forgo the available deductions under the old tax regime under chapter VI-A, such as investments under Section 80C, HRA, health insurance premium, etc.īut there are no changes in the surcharge it will remain the same as the old one- 10% for Rs. Because the new tax policy does not offer exemptions like the old one. It is seen that with the new tax regime is likely to make taxpayers pay a higher tax amount in the long-term in comparison to the old regime.Īnd in the old tax regime, the taxpayers benefitted from several tax exemptions and deductions including tax deductions on health insurance and ELSS investments under section 80 C and house rent allowance, which is not possible on switching to the new system. 12.5-15 lakhs will be levied tax at 20% and 25% respectively. And those falling in the income group of Rs. 10 lakh will be required to pay tax at 15%. 7.5 lakhs would be required to pay income tax at 10%.
12.5 lakh and 30% for 12.5 and above.Īnd in the new tax regime, the income group between Rs. 2.5 lakhs, 5% for annual income between Rs.
So, coming to the old tax rates- it was nil for the annual income up to Rs. However, the Individuals and Hindu Unified Families (HUF) are given an option to choose between the old and the new tax regime. The new budget tries to curtail the option to save the incentives and puts more money in the hands of taxpayers. Though the removal of tax deductions and exemptions would make the compliance less tedious, those who have maintained their financial portfolio to avail tax deductions as per the old slab are likely to pay more tax under the new tax slabs.