Income Tax Slabs 2020
| SLABS | OLD | NEW |
| Up to 2.5 Lakhs | No Tax | No Tax |
| 2.5 Lakhs – 5 Lakhs | 5% | No Tax |
| 5 Lakhs – 7.5 Lakhs | 20% + 12,500 + 3% | 10% |
| 7.5 Lakhs – 10 Lakhs | 20% + 12,500 + 3% | 15% |
| 10 Lakhs – 12.5 Lakhs | 30% + 1,12,500 + 3% | 20% |
| 12.5 Lakhs – 15 Lakhs | 30% + 1,12,500 + 3% | 25% |
| More than 15 Lakhs | 30% + 1,12,500 + 3% | 30% |
Compare Income Tax Budget 2019 and 2020
- Earlier: Whose income was less than Rs. 5 Lakh P.A don’t have to pay any tax. Now: The benefits are same.
- Earlier: Annual income exceeding Rs. 5 Lakhs has to Pay 5% on the income exceeding 2.5 Lakhs, Now: No Tax till Rs. 5 Lakhs.
- Earlier: Income slabs increase from Rs. 5 Lakh to Rs. 10 Lakh, you are liable to Pay 20% Income Tax + 12,500 + 3% cess. Now: 10% for Rs. 5 Lakh to 7.5 Lakh and 15% on annual income of Rs. 7.5 Lakh to 10 Lakh.
- Earlier: On income of Rs. 10 Lakh and more, you have to pay 30% + 1,12,500 + 3% cess. Now: It is divided into three slabs. (i) 10 Lakhs to 12.5 Lakhs – 20%; (ii) 12.5 Lakhs – 15 Lakhs – 25%; (iii) More than 15 Lakhs 30%.
Change in Income Tax Rebate u/s 80C
Under Section 80C earlier the limit was of Rs. 1.5. Now the limit is increased to Rs. 2.5 Lakhs Per Annum.
Bank Deposits Insurance is Hiked to Rs. 5 Lakhs
Earlier the bank deposit takes the security of Rs. 1 Lakh only. This means the liability of Rs. 1 Lakh only in any case. Now the limit of Rs. 1 Lakh is increased to Rs. 5 Lakh. You have the guarantee on your bank deposits up to Rs. 5 Lakhs.