₹5,00,000
| S. No. | Income slabs | Income tax rate (%) |
|---|---|---|
| 1 | Upto 2.5 Lakhs | NIL |
| 2 | Between Rs 2,50,001 and Rs 5 lakh | 5% |
| 3 | Between Rs 5,00,001 and Rs 7.5 lakh | 10% |
| 4 | Between Rs 7,50,001 and Rs 10 lakh | 15% |
| 5 | Between Rs 10,00,001 and Rs 12.5 lakh | 20% |
| 6 | Between Rs 12,50,001 and Rs 15 lakh | 25% |
| 7 | Above Rs 15 lakh | 30% |
*Individuals having taxable income of up to Rs 5 lakh will be eligible for tax rebate under section 87A up to Rs 12,500, thereby making zero tax payable in the new tax regime.
Under the new tax regime, an individual is eligible for only one deduction under section 80CCD (2). This section allows deduction on the employer's contribution to the NPS (National Pension System) account for maximum of 10 per cent of the employee's salary (salary here means basic plus dearness allowance).
Other commonly availed deductions such as those under sections 80C, 80D etc, and tax exemptions such as HRA, LTA etc. are not available in the new tax structure.
| Income Tax Calculation | Monthly | Yearly |
|---|---|---|
| Total CTC | ₹83,333 | ₹10,00,000 |
| Basic | ₹41,667 | ₹5,00,000 |
| Deductions (Employer NPS @10% basic) | ₹0 | ₹0 |
| Amount after deductions | ₹83,333 | ₹10,00,000 |
| Tax Slab | ||
| Upto 2.5 Lakhs (NIL) | ₹0 | ₹0 |
| Between Rs 2,50,001 and Rs 5 lakh (5%) | ₹1,042 | ₹12,500 |
| Between Rs 5,00,001 and Rs 7.5 lakh (10%) | ₹2,083 | ₹25,000 |
| Between Rs 7,50,001 and Rs 10 lakh (15%) | ₹3,125 | ₹37,500 |
| Between Rs 10,00,001 and Rs 12.5 lakh (20%) | ₹0 | ₹0 |
| Between Rs 12,50,001 and Rs 15 lakh (25%) | ₹0 | ₹0 |
| Above Rs 15 lakh (30%) | ₹0 | ₹0 |
| Income Tax | ₹6,250 | ₹75,000 |
| Education Cess @ (4%) | ₹250 | ₹3,000 |
| Total Tax Outgo | ₹6,500 | ₹78,000 |
https://www.axisbank.com/progress-with-us/tax-planning/new-tax-regime-vs-old-tax-regime-union-budget-2020
https://economictimes.indiatimes.com/wealth/tax/how-to-calculate-income-tax-for-fy-2020-21/articleshow/74706402.cms?from=mdr