JEMTEC

Finance minister introduces new tax slab in budget 2020 and give one other option for the tax payers. In this new tax system finance minister proposed tax slab which does not include maximum deductions which normally tax payers use for income tax rebate like 80C, 80 D, LTA, House rent allowance insurance policy premiums etc. In simple words government is trying to discourage income tax payers to invest money in PPF, NSC, ULIP etc and also not give any benefit of tuition fee paid, mutual fund, pension fund, home loan interest and principle, term deposit, post office, health insurance premium. Old Tax Slabs (with Tax deductions) Old Tax Slabs (with Tax deductions) Taxable Income Tax Rate Taxable Income Tax Rate Up to Rs 2.5 Lacs NIL Up to Rs 2.5 Lacs NIL Rs. 2.5 Lacs – Rs 5 Lacs 5% Rs. 2.5 Lacs – Rs 5 Lacs 5% Rs. 5 Lacs – Rs 10 Lac