STORY OUTLINE
| Old tax regime (With deductions and exemptions) | Total income | New tax regime (without deductions and exemptions) |
|---|---|---|
| Nil | From Rs 2,50,001 to Rs 5 lakh | 5% |
| 20% | From Rs 5,00,001 to Rs 7.5 lakh | 10% |
| 20% | From Rs 7,50,001 to Rs 10 lakh | 15% |
| 30% | From Rs 10,00,001 to Rs 12.5 lakh | 20% |
Which deduction is still allowed for 2020?
Deduction from family pension under Section 57. Any deduction under chapter VIA (like Section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, and so on.
What is the new rule for TDS deduction?
TDS on transactions above Rs 50 lakh Under the new section 194Q inserted through Finance Act, 2021, a buyer will have to deduct TDS at 0.1 per cent of amount exceeding Rs 50 lakh at the time of credit of such sum to the account of the seller or at the time of payment, whichever is earlier.
What deductions are not allowed in 2020?
Exemptions and deductions not claimable under the new tax regime
- The standard deduction, professional tax and entertainment allowance on salaries.
- Leave Travel Allowance (LTA)
- House Rent Allowance (HRA)
- Minor child income allowance.
- Helper allowance.
- Children education allowance.
- Other special allowances [Section 10(14)]
Which are the 70 exemptions removed?
What’s out: Here are a few of the 70 exemptions and deductions you won’t see in the new regime- Section 80C investments, house rent allowance, home loan interest, leave travel allowance, medical insurance premium, standard deduction, savings account interest, education loan interest.
What is TDS now?
From today (July 1), non-filers of income tax returns for the past two fiscal years would be subjected to higher tax deducted at source (TDS) and tax collected at source (TCS) rate if such tax deduction was ₹50,000 or more in each of those two years.
