Your income is Rs30,000/- per month. It is the interest from your bank deposits. You have no other income.
Your annual income will be Rs. 3,60.000/-. The slabs are decided based on your income level. The following are the slabs and the rate of tax.
1.There is no tax up to Rs. 2,50,000 per annum income in both the existing income tax scheme and the new income tax scheme.
2, If the income is in between Rs. 2,50,001 and Rs. 5,00,000, the tax rate is 5% in the existing scheme and NIL as per the new system.
3. If the income is in between Rs. 5,00,001 and Rs. 7,50,000, the rate of tax as per the existing scheme is 20% and as per the new scheme it is 10%
4, If the income is in between Rs. 7,50,001 and Rs. 10,00,000, the rate of tax as per the existing system is 20% and as per the new system it is 15%
5. If the income is in between Rs. 10,00,001 and Rs. 12,50,000, the rate of tax as per the existing scheme is 30% and as per the new system it is 20%
6. If the income is in between Rs. 12,50,001 and Rs. 15,00,000, the rate of tax as per the existing scheme is 30% and as per the new system it is 25%
7. if the income is above Rs. 15,00,000 per annum the rate of tac will be same in both the systems and it is 30%
There will be a surcharge to be paid and it will change with the income levels.
There are certain deductions and concessions allowed as per the existing IT rules. There is a standard deduction from the income and then there are some deductions for savings, loans taken for house construction, etc.
In your case what are the savings is not known. If we say there are no savings.
your income will be Rs.3,60.000/- per annum. The standard deduction allowed is Rs. 50,000/- so your taxable income is Rs,3.10.000/-. For the first Rs2,50,000/- there is no tax. So you have to pay a tax on the income of Rs.60.000/- only at the rate of 5%. That is the tax you have to pay is Rs,3000/- (5% of Rs,60,000/-). You will not be coming into the tax level if you opt for the new system. In the old system, you are eligible for tax exemptions on some savings. You can save up to Rs1.5 lakhs under 80CC.