COMPARISON OF TAX PAYABLE BY INDIVIDUAL ON INCOME OF RS.20,00,000/- AS PER NEW SLAB RATE VIS-À-VIS EXISTING SLAB RATE
INCOME SLAB EXISTING SLAB RATE NEW SLAB RATE U/S 115BAC
(WITH AVAILABLE DEDUCTIONS *** ) (WITH NO DEDUCTIONS)
Tax Rate Tax Payable Tax Rate Tax Payable
Nil - 2,50,000 Nil Nil Nil Nil
2,50,001 - 5,00,000 5% 12,500 Nil Nil
5,00,001 - 7,50,000 20% 50,000 10% 25,000
7,50,001 - 10,00,000 20% 50,000 15% 37,500
10,00,001 - 12,50,000 30% 75,000 20% 50,000
12,50,001 - 15,00,000 30% 75,000 25% 62,500
Above 15,00,000 30% 34,500 30% 150,000
***Assuming that Individual is having made investment of Rs.1,50,000/- U/s 80C, medical insurance of Rs.25,000/- U/s 80-D, Saving bank interest of Rs.10,000/- exempted u/s 80-TTA and paid interest on housing loan for which deduction of Rs.2,00,000/- is available u/s 24 of Act.
In Budget 2020, new Section 115BAC is introduced to give an option to Individual or HUF to avail benefit of new slab rates subject to non availability of any deduction or exemptions or losses. As per section 115BAC, no deduction or exemption is allowed to assessee. Besides, brought forward losses and unabsorbed depreciation is also not allowed in case of obtaining benefit of section 115BAC.