Budget 2020 – Income Tax Slabs 2020 | Tax Rebate | Bank Deposit Limit

Income Tax Slabs 2020

SLABS OLD NEW
Up to 2.5 Lakhs No Tax No Tax
2.5 Lakhs – 5 Lakhs 5% No Tax
5 Lakhs – 7.5 Lakhs 20% + 12,500 + 3% 10%
7.5 Lakhs – 10 Lakhs 20% + 12,500 + 3% 15%
10 Lakhs – 12.5 Lakhs 30% + 1,12,500 + 3% 20%
12.5 Lakhs – 15 Lakhs 30% + 1,12,500 + 3% 25%
More than 15 Lakhs 30% + 1,12,500 + 3% 30%

Compare Income Tax Budget 2019 and 2020

  1. Earlier: Whose income was less than Rs. 5 Lakh P.A don’t have to pay any tax. Now: The benefits are same.
  2. Earlier: Annual income exceeding Rs. 5 Lakhs has to Pay 5% on the income exceeding 2.5 Lakhs, Now: No Tax till Rs. 5 Lakhs.
  3. Earlier: Income slabs increase from Rs. 5 Lakh to Rs. 10 Lakh, you are liable to Pay 20% Income Tax + 12,500 + 3% cess. Now: 10% for Rs. 5 Lakh to 7.5 Lakh and 15% on annual income of Rs. 7.5 Lakh to 10 Lakh.
  4. Earlier: On income of Rs. 10 Lakh and more, you have to pay 30% + 1,12,500 + 3% cess. Now: It is divided into three slabs. (i) 10 Lakhs to 12.5 Lakhs – 20%; (ii) 12.5 Lakhs – 15 Lakhs – 25%; (iii) More than 15 Lakhs 30%.

 

Change in Income Tax Rebate u/s 80C

Under Section 80C earlier the limit was of Rs. 1.5. Now the limit is increased to Rs. 2.5 Lakhs Per Annum.

 

Bank Deposits Insurance is Hiked to Rs. 5 Lakhs

Earlier the bank deposit takes the security of Rs. 1 Lakh only. This means the liability of Rs. 1 Lakh only in any case. Now the limit of Rs. 1 Lakh is increased to Rs. 5 Lakh. You have the guarantee on your bank deposits up to Rs. 5 Lakhs.

 

 

 

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