What is the new rules of income tax?

STORY OUTLINE

What are the deductions under new tax regime?

Interest on housing loan on the self-occupied property or vacant property (Section 24) Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJAA) Without exemption or deduction for any other perquisites or allowances. Deduction from family pension income.

Is new tax slab compulsory?

With no change in the basic exemption limit, income tax slabs and rates, an individual tax payer will continue to pay the tax at the same rates applicable in FY 2020-21. Effective from April 1, 2020, a salaried individual was supposed to choose between the new and old tax regime.

Is new tax regime mandatory from next year?

A new optional tax regime was announced by the government in the Finance Act, 2020. Under the newly inserted section 115BAC of the Income-tax Act, 1961, an individual is required to exercise the option of choosing new tax regime at the time of filing income tax return.

Which deductions are not allowed in new tax regime?

Deductions and exemptions not allowed under Section 115BAC

How much tax do I pay on 20 lakhs in India?

For a salary ranging between Rs 20 lakhs and Rs 25 lakhs, the applicable tax rate under the new tax regime would be the highest, that is 30%. Incidentally, this is the same tax slab that your salary would fall under according to the existing tax regime, that is 30%.

Which tax regime is better for 10 lakhs?

Comparison of tax slab and rate in new and old tax regime

What is the income tax on a salary of Rs 5 lakhs per annum?

What are the different tax slabs and tax rates under the new tax regime?