Old regime of Income Tax v/s New regime of Income tax

Old tax regime - The Old tax regime has many deductions under numerous sections that help employees to invest in tax saving options. Below is the slab rate for tax computation under the old regime applicable from FY 2020-21:

For individuals / HUF up to the age of 60 years during FY 2020-21

During individuals/HUF more than 60 years but less than 80 years of age during FY 2020-21

During individual/HUF more than 80 years during FY 2020-21

New tax regime - Under the new tax regime, various deductions and exemptions are not allowed. For example - exemption in HRA, Meal allowance, LTA, the deduction for Medical insurance, LIC premium, equity-linked security scheme, donations to political parties, etc. except for NPS contribution u/s 80 CCD. Below is the slab rate for tax computation under the new regime applicable from FY 2020-21:

Notes: (applicable to both regimes)

• An additional 4% cess shall be calculated over and above tax.

• The surcharge shall also be calculated as follows:

• • Income of more than INR 50 lakhs and up to INR 1 crore: 10% of income tax calculated

• • Income of more than INR 1 crore and up to INR 2 crore: 15% of income tax calculated

• • Income of more than INR 2 crore and up to INR 5 crore: 25% of income tax calculated

• • Income of more than INR 5 crore: 37% of income tax calculated

• • No separate slab rates for Senior citizens in case of new tax regime