New tax regime vs old tax regime benefits: Check benefits

New Income Tax Regime vs Old Tax Regime: Wondering how much income tax you will have to pay if you forego all deductions and exemptions in the new tax regime? The new income tax regime proposed in Budget 2020 for the financial year 2020-21 is aimed at simplifying the taxation process by removing several deductions and exemptions provided in the income tax rules. A recently launched, official income tax calculator provided by the Income Tax department gives an insight into how much taxpayers can benefit if they give up the deductions and exemptions and opt for the new regime.

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Income Tax on Rs 6 lakh income

Without Exemptions/Deductions, the tax calculator shows those earning Rs 6 lakh annual income will have to pay Rs 23400 as tax as per the new regime. The tax payable under the old regime without exemptions and deductions will be Rs 33,800. Thus the total tax benefit as per new regime would be Rs 10,400.

Income Tax on Rs 8 lakh income

Without Exemptions/Deductions, the tax calculator shows those earning Rs 8 lakh annual income will have to pay Rs 75400 as tax as per the new regime. The tax payable under the old regime without exemptions and deductions will be Rs 46,800. Thus the total tax benefit as per new regime would be Rs 28,600.

Income tax Calculator: Calculate your Income Tax here

Income Tax on Rs 10 lakh income

Without Exemptions/Deductions, the tax calculator shows those earning Rs 8 lakh annual income will have to pay Rs 78,000 as tax as per the new regime. The tax payable under the old regime without exemptions and deductions will be Rs 1,17,000. Thus the total tax benefit as per new regime would be Rs 39,000.

Income Tax on Rs 12 lakh income

Without Exemptions/Deductions, the tax calculator shows those earning Rs 12 lakh annual income will have to pay Rs 1,19,600 as tax as per the new regime. The tax payable under the old regime without exemptions and deductions will be Rs 1,79,400. Thus the total tax benefit as per new regime would be Rs 59,800.