New Income Tax Slab 2020 for Salaried Employees
Latest News about Income Tax Slab 2020
Budget 2020 has been announced today and a new income tax slab 2020 has been introduced for salaried employees today. This is a very special day for most of us and salaried employees wait eagerly for this day to know about the changes made in the tax slab. And everyone wants to know how much tax he/she would have to pay according to the new tax slab post-change.
Let us discuss the changes made to the existing Tax for salaried people. This post is specifically for the salaried employees so I would only cover the required details about the changes made to the existing Taxation for the people who are dependent on salary.
I have also provided a comprehensive table with a comparison of Old and New Tax slabs for salaried as per the IT department. You can refer to the table provided below as a quick reference guide and decide if the changes made are beneficial for you or not.
|Salary||Old Tax Percentage||New Tax Percentage|
|0 – 250000||0%||0%|
|250000 – 500000||5%||5%|
|500000 – 750000||20%||10%|
|750000 – 1000000||20%||15%|
|1000000 – 1250000||30%||20%|
|1250000 – 1500000||30%||25%|
|More than 1500000||30%||30%|
This is the new tax slab introduced today. It looks good by referring the figures. It looks beneficial for the employees who are liable to pay tax. The main reason is that earlier the employees who were paying 20% tax due to a higher salary amount than 5 lakhs per year, they would have to pay only 10% of the tax on their salary as per this new tax rule.
Budget 2020 – Income Tax Slab 2020 Breakup for Salaried Employees
Employees who were paying 20% of income tax for getting a salary higher than 7.5 lakhs per annum, those employees will be liable to pay only 15% of the income tax on their salary. This tax will be applicable to a salary from 7.5 lakhs up to 10 lakhs of total income.
One good thing is that earlier from 5 lakhs to 10 lakhs there was only one rule that 20% of the tax would be applicable to the salary between 5 lakhs to 10 lakhs.
That earning group is broken into two different parts now. Now, as per the new rule people earning up to 7.5 lakhs of salary will pay 10% of income ax and people earning between 7.5 lakhs and 10 lakhs will pay 15% of income tax.
Employees who were paying 30% of income tax on their salary between 10 lakhs to 12.5 lakhs, will be paying 20% of income tax on the same salary.
Employees who were paying 30% income tax for their salary between 12.5 lakhs to 15 lakhs, will now pay 25% of income tax for their salary as per new tax rule.
There is no change in the salary above 15 lakhs. Employees getting a salary of more than 15 lakhs per annum were paying 30% income tax earlier and will continue to pay 30% of income tax in the future as well, as per the new tax slab.
This time the tax slab is broken down for every 2.5 lakhs of earning. That looks a bit easy to understand. It looks beneficial for the employees who were paying more tax earlier, they will be able to save some amount of money from the income tax slab part in their salary slip.
New Income Tax Slab 2020
As per the announcement made today, employees who want to enroll in this new income tax slab 2020 rules, would be able to opt for it and there is another option for them to continue to be with the old tax slab if they wish to and are happy with the old income tax slab.
This would now be in the hand of an employee to choose the best for him/her as per his own choice and the finance minister announced it today that those who are willing to be with the old tax slab can continue paying their taxes as per the old rule.
In the chart provided above, you would be able to compare the Old Income Tax Slab vs. New Income Tax Slab 2020 and choose the best for you.
The new income tax rule seems good as per the opinion of experts and it seems that employees would be able to get some benefit out of it if they opt for the new one as the percentage of the income tax is lower than earlier.
This means employees would have to pay a lesser amount than earlier for income tax if they opt for the new income tax slab 2020.
A new income tax slab 2020 is made public today. There is a mixed reaction from the public about this new income tax announcement but most of them are happy with this announcement today.
New Income tax rules for the employees look appealing and there is a rebate in terms of percentage of income tax to be collected from the employees.
Income Tax deduction slab is broken further into multiple 2.5 lakhs categories such as 0 to 2.5 lakhs income tax category, 2.5 to 5 lakhs income tax category, 5 to 7.5 lakhs income tax category, etc.
Full chart of old vs new income tax percentage comparison is provided above for your reference.
The employees will now be able to select either old or new income tax policy for themselves.
Final Words about New Income Tax slab 2020
New Income Tax slab 2020 is out today. There are people who are happy with the announcements made. Also, there are people who were expecting more from the government in terms of benefits for the employees.
What is your opinion about the announcement for income tax-paying employees? Feel free to share your opinion about this new tax rule for this year 2020 by writing your comments below and let the entire country know what you feel about it?
Is it beneficial in any way or do you feel that due to the increased expenses and the rate at which expenses are increasing day by day, this will nullify the benefits and employees will get nothing out of it?
Feel free to share your opinion and feel free to share the post with your friends who could benefit from it.