The income tax department has come up with clarifications for those who want to opt for new tax slabs. The lower income tax rates, as announced in Budget 2020, came into effect from April 1, 2020. The old tax slabs will also continue to remain in effect, giving choice to individuals to opt between the two. Tax experts say whether an individual should choose the new tax regime or the old one depends on a case-to-case basis as under this new lower tax rates, the individual will have to give up on a lot of deductions that could help reduce taxable income. Under the new tax rates, there is zero tax for income up to ₹ 2.5 lakh; 5% for income between ₹ 2.5 lakh and up to ₹ 5 lakh; 10% for income between ₹ 5 lakh and up to ₹ 7.5 lakh; 15% for income between ₹ 7.5 lakh and up to ₹ 10 lakh; 20% for income between ₹ 10 lakh and up to ₹ 12.5 lakh; 25% for income between ₹ 12.5 lakh and up to ₹ 15 lakh; 30% for income abo...