New Regime of Income Tax Slabs

A comparison of tax slabs under the New and Old Regimes:

*The choice of taxability under the old regime or the new regime is optional. The option may be made in the following manner:

1. An individual/HUF not having any income from business/profession has an option to choose every year whether to pay tax under old tax regime or under new tax regime;

2. An individual/HUF having income from business/profession cannot change its option every year. Once the new regime is chosen, it will be applicable on subsequent years as well. However, a person may withdraw from the new regime, on the condition that he will not be eligible to opt back for it ever again, until his business/profession ceases to exist.

Following exemptions and deductions cannot be availed by an individual/HUF, if he opts to be taxed under the new regime.

1. Leave travel concession (LTC);

2. House rent allowance (HRA);

3. Some of the allowances such as helper and transport allowance;

4. Allowances to MPs/MLAs;

5. Allowance for income of minor;

6. Tax Holiday to SEZ unit;

7. Standard deduction for salaried person (₹50,000);

8. Deduction for entertainment allowance and employment/professional tax;

9. Interest under section 24 in respect of self-occupied or vacant property;

10. Additional deprecation;

11. Deductions under section 32AD, 33AB, 33ABA;

12. Various deduction for donation for or expenditure on scientific research;

13. Deduction under section 35AD or section 35CCC;

14. Deduction from family pension;

15. Any deduction under chapter VIA (other than deduction u/s 80JJAA – generation of employment and 80CCD(2) – contribution by CG/employer to NPS)

Indifference Point of Exemptions/Deductions for Salaried Employees

For Salaried Employees, following table may be useful to make a choice between Old Regime and New Regime at the beginning of the year:

Tax Calculators

Several calculators are available online to compare net tax payable under both regimes:

• A simple calculator made by the IT department can be accessed here.

• A more detailed calculator is available on Clear Tax's website.