An easy way to compare our tax benefit under existing & new tax scheme based on your keen to investment

An easy way to compare our tax benefit under existing & new tax scheme based on your keen to investment The Finance Minister placed the Finance Bill 2020 in the Lok Sabha with proposal of a new tax rates for Individual tax payer by restricting certain deductions and reliefs the individual assessee availed so far. Exemptions on HRA & LTA, Standard deduction available to Salaried persons, relief against payment of Professional Tax  have to forego to avail the new tax scheme. Most of the deductions under Chapter VIA of Income Tax Act viz Contribution to Provident Fund, payment of Life & Medical Insurance premium, Purchase of NSC, Interest on Education Loan, Donations to Funds & Charitable Institutions as well as Relief available to Handicap Tax payer  will not available. Moreover, Interest on House Building Loan will not get deducted in calculating taxable income under the new scheme.

Income tax - personal finance issues and concepts

Here is a table showing the tax benefit available under Existing & New Scheme based on your keen towards tax savings Investment & Payments.

Total Annual Income Minimum Investment Reqd. Including Standard Deduction Of ₹50000/- Existing Rate New Rate Tax Benefit Under New Scheme
Income After Deduction & Relief Tax Amount Income Without Deduction & Relief Tax Amount
500000 NIL 500000 NIL 500000 NIL 0
600000 50000 550000 23400 600000 23400 0
700000 100000 600000 33800 700000 33800 0
800000 137500 662500 46800 800000 46800 0
900000 162500 737500 62400 900000 62400 0
1000000 187500 812500 78000 1000000 78000 0
1100000 187500 912500 98800 1100000 98800 0
1200000 180000 1020000 119600 1200000 119600 0
1300000 216667 1083333 143000 1300000 143000 0
1400000 233333 1166667 169000 1400000 169000 0
1500000 250000 1250000 195000 1500000 195000 0
1600000 250000 1350000 226200 1600000 226200 0
2000000 250000 1750000 351000 2000000 351000 0
2500000 250000 2250000 507000 2500000 507000 0
5000000 250000 4750000 1287000 5000000 1287000 0

The figures of Investment is the minimum amount including Standard Deduction of ₹50,000/- available to Salaried persons. If you Invest/Pay  more than the above amount in FY:2020-21, the Existing Tax Scheme is more beneficial to you against respective Annual Income.

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Qualification: CMA
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Location: Kolkata, West Bengal, IN
Member Since: 21 Feb 2020 | Total Posts: 1

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