{"id":22396,"date":"2020-12-20T10:30:44","date_gmt":"2020-12-20T05:00:44","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=22396"},"modified":"2021-10-08T15:30:58","modified_gmt":"2021-10-08T10:00:58","slug":"new-income-tax-slab-determines-on-salary-of-rs-8-10-lakhs-p-a","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/new-income-tax-slab-determines-on-salary-of-rs-8-10-lakhs-p-a\/","title":{"rendered":"The New Income Tax Slab Determines on Salary of Rs. 8 Lakhs and Rs 10 Lakhs Per Annum"},"content":{"rendered":"\n<p class=\"has-drop-cap\">To provide considerable relief to individual taxpayers, the Finance Ministry has proposed the whole new tax regime in the Budget 2020&#8242;. The <a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>Income Tax<\/strong><\/a> rates in India have been slashed a bit, and the tax slabs have now been redesigned for the individual taxpayers who will opt to forgo all the deductions and exemptions. The new Income Tax slab will impact post-budget 2020 to the people having a salary of Rs 8 lakhs &amp; Rs 10 lakhs per annum. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/new-income-tax-slab-determines-on-salary-of-rs-8-10-lakhs-p-a\/#What_are_the_New_Income_Tax_Slab_changes_in_Budget_2020\" >What are the New Income Tax Slab changes in Budget 2020?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/new-income-tax-slab-determines-on-salary-of-rs-8-10-lakhs-p-a\/#What_Deductions_and_Exemptions_Removed_in_new_income_Tax_slab\" >What Deductions and Exemptions Removed in new income Tax slab?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/new-income-tax-slab-determines-on-salary-of-rs-8-10-lakhs-p-a\/#What_is_an_Income_Tax_on_a_Salary_of_Rs8_Lakhs_Per_Annum\" >What is an Income Tax on a Salary\nof Rs.8 Lakhs Per Annum?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/new-income-tax-slab-determines-on-salary-of-rs-8-10-lakhs-p-a\/#What_is_an_Income_Tax_on_a_Salary_of_Rs_10_Lakh_Per_Annum\" >What is an Income Tax on a Salary\nof Rs 10 Lakh Per Annum?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/new-income-tax-slab-determines-on-salary-of-rs-8-10-lakhs-p-a\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_New_Income_Tax_Slab_changes_in_Budget_2020\"><\/span>What are the New Income Tax Slab changes in Budget 2020?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The comparison between the pre and post-budget 2020 tax rates mentioned in the table below:<\/em><\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Taxable Income Range (In Rs)<\/strong>\n  <\/td><td>\n  <strong>Tax Rate before Budget 2020 (Existing)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong>\n  <\/td><td>\n  <strong>Tax Rate after&nbsp; Budget 2020<\/strong>\n  &nbsp;\n  <\/td><\/tr><tr><td>\n  0-2.5\n  lakhs\n  <\/td><td>\n  Exempted\n  <\/td><td>\n  Exempted\n  <\/td><\/tr><tr><td>\n  2.5-5\n  lakhs\n  <\/td><td>\n  5%\n  <\/td><td>\n  5%\n  <\/td><\/tr><tr><td>\n  5-7.5\n  lakhs\n  <\/td><td>\n  20%\n  <\/td><td>\n  10%\n  <\/td><\/tr><tr><td>\n  7.5-10\n  lakhs\n  <\/td><td>\n  20%\n  <\/td><td>\n  15%\n  <\/td><\/tr><tr><td>\n  10-12.5\n  lakhs\n  <\/td><td>\n  30%\n  <\/td><td>\n  20%\n  <\/td><\/tr><tr><td>\n  12.5-15\n  lakhs\n  <\/td><td>\n  30%\n  <\/td><td>\n  25%\n  <\/td><\/tr><tr><td>\n  Above 15\n  lakhs\n  <\/td><td>\n  30%\n  <\/td><td>\n  30%\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/how-to-save-income-tax\/\">A Complete Guide on How to Save Income Tax<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Deductions_and_Exemptions_Removed_in_new_income_Tax_slab\"><\/span>What Deductions and Exemptions Removed in new income Tax slab?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The taxpayers are provided with an option to either continue with the old tax regime or to opt for a new regime. If one will opt for a new income tax slab, then he\/she will not be eligible to avail the deductions and exemptions as mentioned below- <\/p>\n\n\n\n<ul><li><strong><em>Leave Travel Allowances<\/em><\/strong> (LTAs) as provided in clause 5, section 10 of the <strong><em>Income Tax Act 1961<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/The_Income-tax_Act,_1961\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/li><li><strong><em>Housing Rent Allowances<\/em><\/strong> (HRAs) as provided in clause&nbsp; 13 A of section 10<\/li><li>Deductions up to Rs 1, 50, 000&nbsp; (under section 80 C for investments made towards insurance premium, provident fund, principal repayment of housing loan, etc.)<\/li><li>The <strong><em>standard deduction<\/em><\/strong> of Rs. 50,000 under section 16<\/li><li>The <strong><em>professional Tax Deduction<\/em><\/strong> under section 16<\/li><li><strong><em>Deduction of Interest<\/em><\/strong> under section 24 with respect to vacant or self-occupied property mentioned in sub-section 2 of section 23 (Loss under income from the house property for a rented house<\/li><li><strong><em>Any other deduction<\/em><\/strong> specified under chapter VI-A<\/li><li>Others <strong><em>deductions\/exemptions<\/em><\/strong> as prescribed from time to time<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_an_Income_Tax_on_a_Salary_of_Rs8_Lakhs_Per_Annum\"><\/span>What is an Income Tax on a Salary\nof Rs.8 Lakhs Per Annum?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If an individual has a salary of Rs 8 lakh per annum, and he\/she has opted for a new income tax slab regime, then an income tax will be Rs 46,800. It is calculated without any exemptions and deductions. An individual can save Rs 28,600 more as compared to an old tax regime. The table below will make the calculations more clear to you.<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Particulars<\/strong>\n  <\/td><td>\n  <strong>As per Tax Rate before Budget 2020<\/strong>\n  <\/td><td>\n  <strong>As per Tax Rate after&nbsp; Budget 2020<\/strong>\n  <\/td><\/tr><tr><td>\n  Income\n  <\/td><td>\n  8,00,000\n  <\/td><td>\n  8,00,000\n  <\/td><\/tr><tr><td>\n  Deduction\n  u\/s 80 C\n  <\/td><td>\n  1,50,000\n  <\/td><td>\n  Nil\n  <\/td><\/tr><tr><td>\n  Net\n  Taxable Income\n  <\/td><td>\n  6,50,000\n  <\/td><td>\n  8,00,000\n  <\/td><\/tr><tr><td>\n  Net\n  Income Tax (including health and education cess)\n  <\/td><td>\n  75,400\n  <\/td><td>\n  46,800\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_an_Income_Tax_on_a_Salary_of_Rs_10_Lakh_Per_Annum\"><\/span>What is an Income Tax on a Salary\nof Rs 10 Lakh Per Annum?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If an individual has a salary of Rs 10 lakh per annum, and if he\/she has opted for a new tax regime, then an income tax will be Rs 78,000. An individual can save Rs 7,800 more as compared to an old tax regime. The table below will make calculations more clearly to you.<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Particulars<\/strong>\n  <\/td><td>\n  <strong>As per Tax Rate before Budget 2020<\/strong>\n  <\/td><td>\n  <strong>As per Tax Rate after&nbsp; Budget 2020<\/strong>\n  <\/td><\/tr><tr><td>\n  Income\n  <\/td><td>\n  10,00,000\n  <\/td><td>\n  10,00,000\n  <\/td><\/tr><tr><td>\n  Deduction\n  u\/s 80 C\n  <\/td><td>\n  1,50,000\n  <\/td><td>\n  nil\n  <\/td><\/tr><tr><td>\n  Net\n  Taxable Income\n  <\/td><td>\n  8,50,000\n  <\/td><td>\n  10,00,000\n  <\/td><\/tr><tr><td>\n  Net\n  Income Tax\n  <\/td><td>\n  85,800\n  <\/td><td>\n  78,000\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h3 class=\"wp-block-heading\">How can an Individual Save Tax if\na salary is below 10 lakhs?<\/h3>\n\n\n\n<p>If an individual\nhas a salary below Rs 10 lakhs p.a., he\/she may opt for an old Income tax\nregime and must try to lower the tax burden as much as possible by an\nimplementation of the following-<\/p>\n\n\n\n<ul><li>Exhaust\n80 C limit of Rs 1,50,000<\/li><li>Reduce\na medical expenditure, and Invest more in health insurance and avail a\ndeduction<\/li><li>Claim\nfor home loan interest<\/li><li>An\nadditional tax benefit is received if you are the NPS contributor.<\/li><li>Avail a\nstandard deduction if you are the salaried person<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If a taxable income is Rs 10 lakh per annum, then you will fall into the tax slab of Rs 10 lakhs to 12.5 lakhs. According to the new income tax slab rate, post budget 2020, 20% of your taxable income is however liable for the tax deduction. Hence, one can opt for the deductions or can save directly in the old tax regime. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/10-reasons-why-filing-income-tax-return-is-vital-for-you\/\">10 Reasons Why Filing Income Tax Return Is Vital For You<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To provide considerable relief to individual taxpayers, the Finance Ministry has proposed the whole new tax regime in the Budget 2020&#8242;. The Income Tax rates in India have been slashed a bit, and the tax slabs have now been redesigned for the individual taxpayers who will opt to forgo all the deductions and exemptions. The [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":22404,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[1341],"acf":{"service_id":"403"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.","postViews":147888,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/22396"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=22396"}],"version-history":[{"count":6,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/22396\/revisions"}],"predecessor-version":[{"id":36389,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/22396\/revisions\/36389"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/22404"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=22396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=22396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=22396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}