Income Tax calculator 2020 has now become a big requirement for a whole bunch of people because Finance Minister Nirmala Sitharaman’s Union Budget 2020 introduced new tax slabs. Now you can either opt in to the new tax regime and stop claiming any deductions to taxable income, or you can continue to pay as per the existing tax slab with several deductions. If all this has got you confused, here’s a very simple income tax calculator that will tell you whether the old tax regime will benefit you or if the new tax regime is better.
This income tax calculator has been launched by the government itself, so it’s as official as it gets. In this income tax calculator 2020, all you need to do is enter your total annual income, and the total amount of deductions you expect to claim. Deductions include PPF, EPF, investments in tax-saving mutual funds, health insurance, children’s tuition fees, fuel and conveyance reimbursements, etc. Be sure to add all of these things and input a single number as your total annual deduction.
Remember that Budget 2020 is applicable to the financial year that begins on April 1, 2020 and ends on March 31, 2021, so you should input your income based on what you expect to earn during that time.
Income tax calculator 2020: New tax regime vs existing tax regime
Follow these steps to find out whether you will save money with the new tax slabs or whether you should stick with the old tax slabs.
- Open the Income Tax India E-Filing website’s tax calculator 2020.
- Enter your Estimated Annual Income.
- Fill in all your estimated deductions in the field labelled Less: Exemptions/ Deductions. Remember to add all of your expected reimbursements, insurance payments, EPF deductions, house rent allowance, etc.
- Click Compare Tax under Existing & New Regime
Now you will see how much tax you will pay under the old tax slabs and how much under the new tax slabs. The site also shows you which of the two is beneficial to you.
