Dear All, The Finance Act 2020-21 provides all taxpayers the option of choosing between two types of tax computation methods.
These two methods have different tax slabs and tax rates.
The Existing Tax Computation method.
This method gives you Tax benefit on your all your investments, Rent payment, Home Loan, Education Loan repayment, Standard Deduction, and on various reimbursements
The New Tax Computation method.
This method does not give tax benefits on above mentioned investments and expenses.
The New method is better/beneficial for those taxpayers who do not have any investments and are not taking tax benefits on education/home loan repayment.
To check which method is better for you, please find attached herewith a tax calculator and provides your salary and investment details in highlighted yellow cells in "Salary and Investments sheet" and check your per month tax in both the methods in next sheet( Tax Current Vs New Method).
Feel free to write for any rectification.
From India, New Delhi