Based on the Union Budget 2020, which option should the taxpayer choose out of

the new personal tax regime and existing personal tax regime? Give your answer by showing computation of the taxable salary for P.Y. 2020-21, A.Y. 2021-22 under the new and existing personal tax regime by using an example.

For your example kindly assume the following: -

i).The taxpayer is a salaried employee and is employed with a Pvt. Ltd. company since 2018.

ii).Salary structure of the taxpayer must consist of Basic Salary, Dearness Allowance (100% forming part of all retirement benefits), House Rent Allowance, Conveyance Allowance and Children Education Allowance.

iii).All the allowances (mentioned in point (ii) above) that he / she receives must be based on a percentage of Basic Salary.

iv).Professional tax of the taxpayer for the P.Y. is borne and paid by the taxpayer. v). Salary and all the allowances become due on the last day of the same month

and are paid on second day of the next month.

vi). The taxpayer is employed with this company throughout the P.Y. vii). The taxpayer does not own any residential house property.

viii). The taxpayer has 2 minor children studying in a CBSE school in India. ix). The Taxable Salary must be above Rs. 15 lakhs and upto Rs. 50 lakhs.

You are also required to mention other necessary notes and / or assumptions to support your example.