The Income tax department has launched an e-calculator that helps the taxpayers in estimating their tax liabilities on switching to the new tax slab (with no exemptions and deductions) while filing the ITR. This e-calculator comes with a comparative table, which allows the resident individuals in comparing the taxes in the new and old regime (the financial year 2020-21). It is available on the official e-filing website of the department, the online portal that is used for electronic filing of the Income Tax Returns (ITRs) by all the taxpayers in India.
Taxpayers below the normal age group of 60 years, senior citizens between the age group of 60 and 79 years and super senior citizens who are above the age group of 79 years can enter their income from all the sources, the eligible exemptions and deductions in order to have an estimate of their total taxable income on continuing with the old regime and switching to the new one.
This e-calculator takes into account the available deductions and exemptions under the purview of the new tax regime, as extracted from the Budget memorandum 2020.
The new income tax regime as proposed by the Financial Minister removes some 70 available exemptions in the old regime and keeps 50 untouched. And the tax slab remains the same a 5% for those earning from ₹2.5 lakh to ₹5 lakh, 10%, 15%, 20% and 25 % on addition of every ₹2.5 lakh. And for the income group above ₹15 lakh, the new tax slab remains at 30%.
The current tax regime permits a standard deduction of ₹50,000 and ₹1.5 lakh in saving schemes. The existing tax slab is 5% for income ranging from ₹2.5 lakh to ₹5 lakh, 20% for ₹5 to ₹10 lakh and 30% for income above that.
Tax Calculator for Resident Individuals FY 2020-21
1. Select the Age-
2. Enter your Estimated Annual Income (not applicable to Income with special rates)
3. Enter the amount of Exemptions and Deductions (the exemptions and deduction are as per the old tax regime)
4. Click on compare tax under existing and new regime
This e-calculator is to give a basic idea estimation of the tax impact of the new regime. For actual eligibility and provisions please refer to the Income Tax Provisions. All the income tax calculations (includes cess) do not include surcharge. The exemptions and deductions are assumed to be Zero in the new tax regime.