Salaries and Budget Impact 2020

BUDGET-2020 IMPACT ON SALARIED EMPLOYEES
SALARY RANGE UPTO 7,50,000/- PA
Example : Old Regime New Regime

Let us Assume Income Particulars of OPTION:1
Mr.SURESH KUMAR Amount(Rs) Amount(Rs) If Assessee Wish to
Avail New Beneifcial
Gross Salary of Employee Rate then he will
750,000 750,000
(Without HRA and LTC) Loose ALL Deductions
C and Exemptions
Less: Standard deduction u/s 16(ia) (50,000) -
(removal of 70
A
Income Under the Head Salaries 700,000 750,000 deductions )
U
Less: Interest on Home Loan (200,000) -
T
Less: Tax on employment u/s 16(iii) (2,400) - I
OPTION:2
Total Income 497,600 750,000
O As per Budget Speech
N of FM , Assessee Can
Less: Deductions U/s 80C (150,000) - Opt for Old Tax Rates
with the benefit of
Less: Deductions U/s 80D (50,000) -
claiming all elgible
Less: NPS Contricution U/s 80CCD(1B) (50,000) (50,000) Deductions and
Exmptions
Total Income 247,600 700,000
Old Tax New Tax
INCOME TAX SALBS Tax Impact Tax Impact
Rate Rate
Tax on Basic Limit 2,50,000/- Nil - - Nil
Income Tax on-
5% - 12,500 5%
( 2,50,000 - 5,00,000 )
Income Tax on-
20% - 20,000 10%
( 5,00,000 -7,50,000 Lakhs)
Income Tax on - Yet to get Perfect
20% - - 15%
( 7,50,000 -10,00,000 Lakhs) Clarification on ;
Income Tax on - 1.Sec 80 E - Interest on

30% - - 20%
(10,00,000 -11,75,000 Lakhs) Education Loan
Less: Sec 87A Rebate - - 2.Sec.80G Donations
Final Tax Payable - 32,500 3.PPF Interest

Excess Tax as
FINAL TAX IMPACT 32,500 4.EPF Contribution
per New Rate
5.HRA & LTC Exemption
Presented by
CA SURESH KUMAR A
Chartered Accounatnt
F.C.A.,M.Com.M.B.A.,M.Sc(Psy)
Tirupati - 9701869616

1,000,000 1,000,000
C and Exemptions
(removal of 70
A
Income Under the Head Salaries 950,000 1,000,000 deductions )
U
T
OPTION:2
Total Income 747,600 1,000,000
with the benefit of
Exmptions
Total Income 497,600 950,000
Old Tax New Tax
Rate Rate
Income Tax on-
5% 12,380 12,500 5%
( 2,50,000 - 5,00,000 )
Income Tax on-
20% - 25,000 10%
( 5,00,000 -7,50,000 Lakhs)
20% - 30,000 15%

30% - - 20%
Less: Sec 87A Rebate 12,500 - 2.Sec.80G Donations
Final Tax Payable - 67,500 3.PPF Interest

Excess Tax as
per New Rate
Presented by
CA SURESH KUMAR A
Tirupati - 9701869616

1,175,000 1,175,000
C and Exemptions
(removal of 70
A
Income Under the Head Salaries 1,125,000 1,175,000 deductions )
U
T
OPTION:2
Total Income 922,600 1,175,000
with the benefit of
Exmptions
Total Income 672,600 1,125,000
Old Tax New Tax
Rate Rate
Income Tax on-
5% 12,500 12,500 5%
( 2,50,000 - 5,00,000 )
Income Tax on-
20% 34,520 25,000 10%
( 5,00,000 -7,50,000 Lakhs)
20% - 37,500 15%

30% - 25,000 20%
Less: Sec 87A Rebate - - 2.Sec.80G Donations
Final Tax Payable 47,020 100,000 3.PPF Interest

Excess Tax as
per New Rate
Presented by
CA SURESH KUMAR A
Tirupati - 9701869616

1,500,000 1,500,000
C and Exemptions
(removal of 70
A
U
T
OPTION:2
Total Income 1,247,600 1,500,000
with the benefit of
Exmptions
Total Income 997,600 1,450,000
Old Tax New Tax
Rate Rate
Income Tax on-
5% 12,500 12,500 5%
( 2,50,000 - 5,00,000 )
Income Tax on-
20% 50,000 25,000 10%
( 5,00,000 -7,50,000 Lakhs)
20% 49,520 37,500 15%

30% - 75,000 20%
Income Tax on -
30% - 50,000 25% 2.Sec.80G Donations
(12,50,000 -15,00,000 Lakhs)
Less: Sec 87A Rebate - - 3.PPF Interest
Final Tax Payable 112,020 200,000 4.EPF Contribution

Excess Tax as
FINAL TAX IMPACT 87,980 5.HRA & LTC Exemption
per New Rate
Presented by
CA SURESH KUMAR A
Tirupati - 9701869616

2,000,000 2,000,000
C and Exemptions
(removal of 70
A
U
T
OPTION:2
Total Income 1,747,600 2,000,000
with the benefit of
Exmptions
Total Income 1,497,600 1,950,000
Old Tax New Tax
Rate Rate
Income Tax on-
5% 12,500 12,500 5%
( 2,50,000 - 5,00,000 )
Income Tax on-
20% 50,000 25,000 10%
( 5,00,000 -7,50,000 Lakhs)
20% 50,000 37,500 15%

30% 75,000 50,000 20%
Income Tax on -
30% 74,280 62,500 25% 2.Sec.80G Donations
(12,50,000 -15,00,000 Lakhs)
Income Tax on -
30% - 135,000 30% 3.PPF Interest
(15,00,000 -20,00,000 Lakhs)
Less: Sec 87A Rebate - - 4.EPF Contribution
Final Tax Payable 261,780 322,500 5.HRA & LTC Exemption

Excess Tax as
FINAL TAX IMPACT 60,720
per New Rate
Presented by
CA SURESH KUMAR A
Tirupati - 9701869616

Salaries and Budget Impact 2020

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Salaries and Budget Impact 2020

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BUDGET-2020 IMPACT ON SALARIED EMPLOYEES

SALARY RANGE UPTO 7,50,000/- PA

Example : Old Regime New Regime

Income Tax on - 1.Sec 80 E - Interest on

Less: Sec 87A Rebate - - 2.Sec.80G Donations

Final Tax Payable - 32,500 3.PPF Interest

Example : Old Regime New Regime

Income Tax on - 1.Sec 80 E - Interest on

Less: Sec 87A Rebate 12,500 - 2.Sec.80G Donations

Final Tax Payable - 67,500 3.PPF Interest

Example : Old Regime New Regime

Income Tax on - 1.Sec 80 E - Interest on

Less: Sec 87A Rebate - - 2.Sec.80G Donations

Final Tax Payable 47,020 100,000 3.PPF Interest

Example : Old Regime New Regime

Income Tax on - 1.Sec 80 E - Interest on

Less: Sec 87A Rebate - - 3.PPF Interest

Final Tax Payable 112,020 200,000 4.EPF Contribution

Example : Old Regime New Regime

Income Tax on - 1.Sec 80 E - Interest on

Less: Sec 87A Rebate - - 4.EPF Contribution

Final Tax Payable 261,780 322,500 5.HRA & LTC Exemption

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