New v/s. Old tax scheme under IT act

Particular

New Tax Scheme

Old Tax Scheme

Tax Slab for individuals below 60 years of age

Taxable Income upto:

• 0 - 2.5 lacs – 0%

• 2.5 lacs to 5 lacs - 5% on 2.5 lacs i.e. upto 12,500/-

• 5 lacs to 7.5 lacs - 10% on 2.5 lacs + 12,500/-

• 7.5 lacs to 10 lacs - 15% on 2.5 lacs + 37,500/-

• 10 lacs to 12.5 lacs - 20% on 2.5 lacs + 75,000/-

• 12.5 lacs to 15 lacs - 25% on 2.5 lacs + 125,000/-

• 15 lacs above - 30% above 15 lacs + 187,500/-

Taxable Income upto:

• 0 - 2.5 lacs - 0%

• 2.5 lacs to 5 lacs - 5% on 2.5 lacs i.e. upto 12,500/-

• 5 lacs to 10 lacs - 20% on 5lacs + 12,500/-

• 10 lacs and above - 30% on 10 lacs above + 112,500/-

Cess

Health and education cess @ 4% will be added on and above tax as computed above.

Health and education cess @4% will be added on and above tax as computed above.

Deduction under Chapter VI-A of Income Tax Act.

Following deductions will not be allowed i.e. will not be deducted from Income to arrive at final taxable income:

• 80C (Rs. 1.5 lacs) - LIC, tuition fees, Principal on housing loan, stamp duty on residential house property etc.

• 80CCC - Contribution to other pension funds

• 80CCD - Contribution to Central Govt. Pension scheme (employee contribution only, employer contribution allowed as exemption)

• 80D - Mediclaim for self and parents

• 80DD – Expenditure for dependent disability

• 80DDB - Medical Treatment for specified diseases

• 80E - Interest on education loan for higher studies

• 80EEA - Interest on housing loan, where stamp duty value of house property is upto 45 lacs

• 80EEB - Interest on loan for purchase of electric vehicle

• 80G - Donation to specified funds, charitable institutions

• 80GG – Deduction for rent paid

• 80GGA - Donation for scientific research or rural development

• 80GGC - Contribution to political parties

All deductions under chapter VI-A as listed in “New tax Scheme” will be allowed to be deducted from income to arrive at taxable income.

Deduction from salary

Deductions from salary on below not allowed:

• Interest on self-occupied property (upto Rs. 2 lacs)

• Standard Deduction of Rs. 50,000/-

• House rent allowance (HRA)

• Leave Travel Concession (LTC/LTA)

• Children Education Allowance (Rs. 200/- p.m. per child upto 2 children)

• Profession Tax (Rs. 2,500)

All deductions from salary as listed in “New tax Scheme” will be allowed to be deducted from salary to arrive at taxable salary in the hand of assessee.

Rebate u/s. 87A

If taxable income (i.e income with no deductions and exemptions as above) does not exceeds Rs. 5 lacs, than rebate shall be amount equal to tax payable or Rs. 12,500/- whichever is less.

If taxable income (i.e. income (minus) deductions and exemptions as above) does not exceeds Rs. 5 lacs, than rebate shall be amount equal to tax payable or Rs. 12,500/- whichever is less.

Tax Slab for individuals between 60 to 80 years of age

Taxable Income upto:

• 0 - 3 lacs - 0%

• 3 lacs to 5 lacs - 5% on 2 lacs i.e. upto 10,000/-

• 5 lacs to 7.5 lacs - 10% on 2.5 lacs + 10,000/-

• 7.5 lacs to 10 lacs - 15% on 2.5 lacs + 35,000/-

• 10 lacs to 12.5 lacs - 20% on 2.5 lacs + 72,500/-

• 12.5 lacs to 15 lacs - 25% on 2.5 lacs + 122,500/-

• 15 lacs above - 30% above 15 lacs + 185,000/-

Taxable Income upto:

• 0 - 3 lacs - 0%

• 3 lacs to 5 lacs - 5% on 2 lacs i.e. upto 10,000/-

• 5 lacs to 10 lacs - 20% on 5 lacs + 10,000/-

• 10 lacs and above - 30% on 10 lacs above + 110,000/-