What is New Tax Regime? What are the Tax slabs for the New Tax regime?

Budget 2020 includes a new tax slab that will go into effect on April 1, 2020. Higher income earners pay lower tax rates under this new income tax bracket. It is voluntary and gives you the option of reducing your tax obligation. The specific deductions and exemptions allowed by the Income Tax Act of 1961 would not be accessible if you decide to calculate your taxes under the new tax system. However, the deductions and exemptions would be accessible under the previous tax system.

Comparison Of Old v/s New Tax Slab Rates

Note: Salary earners are eligible for the rebate under Section 87A of the Income Tax Act of 1961 if their net taxable income is up to Rs 5 lakhs. To make the tax liability zero, a rebate of Rs 12,500 or the actual tax due, whichever is smaller, would be permitted.