Knowledge Centre

  • Knowledge is power
  • Information is liberating
  • Education is the premise of progress, in every society
Economy | February 04, 2020

Income Tax Return: Settling The Old vs New Tax Regime

The Finance Minister Ms. Nirmala Sitharaman introduced the Union Budget on 1st February 2020 with the aim to boost the Indian economy.

New vs. Old tax rates for Personal tax

Income Tax Slab for New FY 2020-21 New Tax Rate Old Tax Rate
1). Upto Rs 2.5 Lakhs Exempt Exempt
2). Rs 2.5- Rs 5 Lakhs 5% 5%
3) Rs 5- Rs 7.5 Lakhs 10% 20%
4). Rs 7.5 -Rs 10 Lakhs 15% 20%
5). Rs10- Rs12.5 Lakhs 20% 30%
6). Rs12.5-Rs 15 Lakhs 25% 30%
7). Above Rs 15 Lakhs 30% 30%

If an individual wishes to avail the new tax rates as announced by Budget 2020, he/ she will not be eligible to claim the following tax benefits:

  1. Leave travel concession as contained in clause (5) of section 10.
  2. House rent allowance as contained in clause (13A) of section 10.
  3. The allowances as contained in clause (14) of section 10.
  4. Standard deduction of Rs. 50,000 u/s 16.
  5. Employment/professional tax deduction as contained in section 16.
  6. Interest under section 24 in respect of self-occupied or vacant property referred to in sub-section (2) of section 23. (Loss under the head income from house property for rented house shall not be allowed to be set off under any other head and would be allowed to be carried forward as per extant law).
  7. Any deduction under chapter VI-A ; [except 80CCD(2) - NPS Contribution by the employer.

The tax rates have been reduced but with the new tax rates one cannot avail around 70 tax exemptions and deductions out of more than 100 which were earlier can be availed. So,basically, one has to forego all of these. However, it depends upon person to person which tax rates are beneficial to go ahead with.

Let us understand this with the help of example:

Salary 6 lakh: The one can invest 50 K in 80C, mediclaim, and others to get in 5 lakh range and hence have to pay no income tax. (50K will be deducted in Standard Deduction)

Salary 7 lakh: Either pay 32.5 K with new slab or invest 1.5 lakh under 80C and others to save the tax (50K will be deducted in Standard Deduction)

Salary 8 lakh: Either pay 40 K with new slab or invest 1.5 lakh under 80C and others, 50K in NPS to save the tax, (50K will be deducted in Standard Deduction). Still have to pay 22.5K for tax

Salary 9 lakh: Either pay 60 K with new slab or invest 1.5 lakh under 80C and others, 50K in NPS, (50K will be deducted in Standard Deduction), and still pay 42.5 K

Above calculations suggest that old tax rates with exemptions and deductions is a better option for those individuals having higher income bracket

If someone has a home loan, education loan, mediclaim for family or parents, certain other deductions will be available in the later tax slab. Hence, from this year now one has to calculate their total income as well as deductions and have to decide whether they will invest money for a lock-in period or can get better returns after paying income tax through new slab.

It is important to note that post the announcement of new tax rates, Individual will have more cash in hand at his/her disposal at the end of every month or year which was primarily the purpose of the government to boost the consumption thereby taking India into the $5trillion GDP goal.

Benefits of new tax rates

  • Optional for Individuals for opting old or new rates.
  • Lower Income earners are benefitting from new tax rates
  • National Pension System (NPS) i.e. Deduction under 80CCD(2) will continue
  • DDT abolished


Contact Us

Related Blogs

Frequently Asked Questions


Important Message The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

Attention Investors
  • 1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • 2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • 3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
  • 4. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.
  • 5.Investments in securities market are subject to market risks, read all the related documents carefully before investing.
  • 6.The securities are quoted as an example and not as a recommendation.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries forrefund as the money remains in investors account.
Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from NSDLon thesame day.....issued in the interest of investors.
KYC is a one-time exercise while dealing in securities markets-once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. | (As instructed by SEBI, We hereby declare that we do engage in proprietary trading in all segment across the exchange.)
Effective communication & Speedy redressal of the grievances a. Register on SCORES portal b. Mandatory details for filing complaints on SCORES: i. Name, PAN, Address, Mobile Number, Email ID c. Benefits: i. Effective communication ii. Speedy redressal of the grievances link:
In case of grievances for any of the services rendered by Findoc Investmart Pvt Ltd write an email to
Mandatory updation of certain attributes of KYC of clients - The advisory is also displayed on the Depository website at following link:
1. NSDL:IN-DP-469-2020 2. Findoc Finvest Pvt. LTD. CIN no:U65910CH1995PTC016409 RBI REGISTRATION NO. B-06.00267 3. Findoc Investmart Private Limited CIN no:U74992CH2010PTC035180 SEBI REGISTRATION NO. INZ000164436 4. Findoc Investmart IFSC PVT. LTD CIN no: U65999GJ2017PTC095984 SEBI REGISTRATION NO. INZ000200735 5. INVESTMENT ADVISOR SEBI Registration no. INA100012297

Member I'd | Nse- 14697 | BSE- 6529 | MCX- 55205 | NCDEX- 01152


Registered Office :

1210/1211/1212/1213,1213A, Exchange Plaza, Near Mercury Hotel, Opp. WTC Tower, Gift City, Gandhi Nagar- 382355, Gujarat, India

Corporate Office :

4th Floor, Kartar Bhawan, Near PAU Gate No.1, Ferozepur Road Ludhiana -141001.

Copyright © 2024 FINDOC INVESTMART PVT. LTD. All Rights Reserved.

Developed & Content Powered by Accord Fintech Pvt. Ltd.

Open a Demat Account