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At the stage of the passing of the Bill, the amendments originally proposed in the criteria determining 'residential status' in India of a person in the Finance Bill 2020 were relaxed. This change will directly impact the non-resident Indian.
According to tax experts, individuals opting for the new tax regime should keep in mind that their tax liability will be calculated as per the new tax rates if tax return is filed before the deadline of filing ITRs, i.e., July 31.
The budget for the next fiscal has proposed to add a new tax regime to the existing one. From April, taxpayers will have the option to choose the proposed lower tax rates with no exemptions, or the existing regime that allows for deductions and exemptions.
An individual with a salary of Rs 10 lakh is wondering which tax structure will benefit them more. Should they opt for new tax regime sans tax exemptions and deductions or continue with existing tax structure with tax exemptions and deductions.
In the new tax regime, the tax benefit available on employee's own contribution to EPF account is impacted.
If an individual earning Rs 15 lakh is wondering which tax structure will be more beneficial, then he/she can figure out the same by calculating the total amount of deductions that he/she is claiming in a financial year.
Every week, an expert selected by ET answers queries from our readers on taxation.
Here is how much total deductions and tax-exemptions a person with Rs 20 lakh total salary income in a financial year should claim so that his/her tax-liability remains the same in both tax structures.
As your income level increases, income at different levels will be taxed at different rates which are called the slab rates. To know how much is your income tax liability in a financial year, it is important to know which income tax slab you fall in.
In the new tax regime, there is good news for individuals who have rented out their house property. Such individual taxpayers can avail the deduction on interest paid on housing loan. However, one should be careful while claiming this deduction.
Budget 2020 had proposed an alternate income tax structure, which has come into effect fro April 1, 2020. Find out whether you will benefit or not.
Keep in mind that foregoing the deductions under Section 80 must not make you abandon certain instruments.
Although it is advised not to use insurance solely for the purpose of tax saving, under the existing regime there are various tax sops that allow you to save tax via life and health insurance.
Many investors are sending WhatsApp messages or calling up their mutual fund advisors to ask about how the new personal tax proposals would impact their tax saving investments, including ELSS.
“If you find the new scheme preferable, you can move to it or you can continue with the old one,” said CBDT.