Excel calculator for tax FY 2020-21 - New regime and old regime comparison

Budget 2020: Bringing a revolutionary change in direct tax rates, Finance Minister Nirmala Sitharaman has proposed a new tax regime, under which 7 income tax slabs are introduced and tax rates have been slashed on income up to Rs 15 lakh.

The slabs and tax rates under the new regime are –

1. Up to Rs 2,50,000 – Nil
2. From Rs 2,50,001 to Rs 5,00,000 – 5 per cent
3. From Rs 5,00,001 to Rs 7,50,000 – 10 per cent
4. From Rs 7,50,001 to Rs 10,00,000 – 15 per cent
5. From Rs 10,00,001 to Rs 12,50,000 – 20 per cent
6. From Rs 12,50,001 to Rs 15,00,000 – 25 per cent
7. Above 15 lakh – 30 per cent

Surcharge and cess shall be continued to be levied at the existing rates.

Under the old regime, the tax slabs and rates are kept unchanged as declared in last year’s Budget. Acting finance minister Piyush Goyal, in the Interim Budget 2019, increased the tax rebate from Rs 2,500 to Rs 12,500 for taxpayers having taxable income up to Rs 5 lakh. So, tax liability of individuals (up to 60 years of age), Senior Citizens and Super Senior Citizens having taxable income up to Rs 5 lakh was brought to zero. During her first Budget later in 2019, India’s first female Finance Minister Nirmala Sitharaman introduced new surcharge rates of 25 per cent for income above Rs 2 crore and up to Rs 5 crore and 37 per cent surcharge on income above Rs 5 crore.

Tax slab in FY 2019-20:

1. Up to Rs 2,50,000: Nil (For Senior Citizens Rs 3 lakh and for Super Senior Citizens Rs 5 lakh)
2. From Rs 2,50,001 to 5,00,000 – 5 per cent
3. From Rs 5,00,001 to 10,00,000 – 20 per cent
4. Above Rs 10,00,000 – 30 per cent
5. Tax rebate – up to Rs 12,500 on taxable income up to Rs 5 lakh
6. Health and Education Cess – 4 per cent

Surcharges:

1. On income between Rs 50 lakh to Rs 1 crore – 10 per cent
2. Over Rs 1 crore to Rs 2 crore – 15 per cent
3. Over Rs 2 crore to Rs 5 crore – 25 per cent
4. Above Rs 5 crore – 37 per cent

Below table shows the comparison taking 15L as annual income as example in both the regime, one with exemptions in old regime and one without exemptions in old regime

1) Without exemptions in old regime

2) With exemptions in old regime

You can download the Excel tax calculator sheet to compare both the old regime and new regime for FY 2020-21 from below and decide for yourself. 

Excel Tax Calculator FY 2020-21