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Fin year 2020-21
If a person's salary is 1050000 in the fin year 2020-21. How much tax he would pay in the new tax system ?
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https://www.bankbazaar.com/income-tax.H T M L
https://www.bankbazaar.com/income-tax.H T M L
85000/- + cess 4%
upto 250000 >> Nil
2.50 to 5 lakhs >> 12500/- (5%)
5.00 to 7.50 lakhs >> 25000/- (10%)
7.50 to 10 lakhs >> 37500/- (15%)
10 to 10.50 lakhs >> 10000/- (20%)
So 85000+4% Cess
upto 250000 >> Nil
2.50 to 5 lakhs >> 12500/- (5%)
5.00 to 7.50 lakhs >> 25000/- (10%)
7.50 to 10 lakhs >> 37500/- (15%)
10 to 10.50 lakhs >> 10000/- (20%)
So 85000+4% Cess
tax on salary income of Rs. 10,50,000/- shall be as follows :-
1) first 2,50,000/- : nil as basic exemption limit
2) next 2,50.000/- : 12,500 @ 5%
3) next 2,50,000/- : 25,000 @ 10%
4) next 2,50,000/- : 37,500 @ 15%
5) next 50,000/- : 10,000 @ 20%
total tax shall be Rs. 85,000 before rebate of Section 87A i.e. Rs. 12500 so effectively tax shall be payabe Rs 72,500. and cess @ 4%
Under new tax regime, there is no Rebate 87A applicable.
So tax will be 85000 +4% cess
So tax will be 85000 +4% cess
But upto 5 lakh nil tax. pls clear it ?
Under old tax regime if total income is below 5 lakhs then -
tax 12500/-
less - 12500/-
net tax - Nil
No tax is bcoz of 87A rebate
But if you cross 5 lakhs in income, there is no rebate available. eg. Total income say 510000/- then
Tax 14500/- (12500+2000)
Less - Rebate Nil
Net tax is 14500/- + 4% Cess
tax 12500/-
less - 12500/-
net tax - Nil
No tax is bcoz of 87A rebate
But if you cross 5 lakhs in income, there is no rebate available. eg. Total income say 510000/- then
Tax 14500/- (12500+2000)
Less - Rebate Nil
Net tax is 14500/- + 4% Cess
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