New Delhi, February 12: With the new slab Income Tax was announced by the Finance Minister Nirmala Sitharaman on February 1, 2020, various sections were curious how they would file the Income Tax under the new regime. The Income Tax department had now come up with a new Income Tax calculator, under which a taxpayer can get an idea of how much he or she need to pay as IT in the new regime.
According to Income Tax calculator, launched by the Income Tax department, taxpayers can make the right decision by clicking on New Income Tax Slabs Regime or Existing Income Tax Slabs Regime. With the e-calculator, apart from getting an estimate of IT, an individual can compare their tax liability under the new tax slabs as compared to the existing regime. New Income Tax Rates And Slabs For FY 2020-21: Nirmala Sitharaman Unveils 'Optional' Tax Regime in Budget, Reduces Tax For Income Up to Rs 15 Lakh Without Exemptions.
Under the new Income Tax calculator, a taxpayers who have rented out thier house property can claim for deductions under 80C, 80D, interest on housing loan, HRA and LTA etc. However, the IT also made it clear that under the new regime, the lower the gross salary, higher the additional tax payable by individuals. The IT department also stated that each individual will have to make their own calculations to see if the new regime is beneficial or the older one.
The new tab for the calculator has been placed on the homepage of the official e-filing website of the department -- https://www.Incometaxindiaefiling.Gov.In. Once an individual clicks, it takes the user to the next page meant for calculating tax liability for resident individuals (financial year 2020-21).
Here are the steps to calculate the Income Tax under the new e-Calculator:
1) Visit the e-filing website of income department.
2) Click on ‘Tax Calculator FY 2020-21
3) On the next page, choose your age from the drop down
4) Enter your Estimated Annual Income which is your gross income from all sources
5) Then, enter Exemptions / Deductions that you may avail next FY.
6) Submit by clicking ‘Compare tax under existing and new regime’ button
Following this, it will show:
a) Tax Payable as per Old Regime
b) Tax Payable as per Old Regime
c) Your Tax Outflow is same in both Old & New Regime
d) Tax Benefit as per New Regime
e) Tax Benefit as per Old Regime