Which Deduction Is Still Allowed For 2020?

What is the new income tax slab for 2020 21?

Income tax slab rate applicable for New Tax regime – FY 2020-21.Income Tax SlabNew Regime Income Tax Slab Rates for FY 2020-21 (Applicable for All Individuals & HUF)Rs.

5.00 lakhs- Rs 7.5 Lakhs10%Rs 7.5 lakhs – Rs 10.00 Lakhs15%Rs 10.00 lakhs – Rs.

12.50 Lakhs20%Rs.

12.5 lakhs- Rs.

15.00 Lakhs25%4 more rows•6 days ago.

What is the maximum tax exemption?

Under Section 80C, the maximum tax exemption limit is Rs 1.5 Lakhs per annum. The various investments that can be claimed as tax deductions under section 80c are listed below; PPF (Public Provident Fund) EPF (Employees’ Provident Fund)

What deductions are not allowed in new tax regime?

3. Exemptions and deductions not claimable under the new tax regimeThe 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 [Section10(14)]More items…•

Which regime is better for income tax?

New taxation regime is better for employees with less salary and less investments resulting in lesser deductions and exemptions.

Which tax regime is better for 20 lakhs?

If the total is equivalent to or exceeds Rs 2.5 lakh, then he/she would pay the same or less tax in the existing tax regime vis-à-vis the new regime….Synopsis.ParticularsTax payable in Existing RegimeTax payable in New RegimeStandard Deduction-50,000-Income under the head salary19,50,00020,00,0008 more rows•Feb 21, 2020

What are the new tax deductions for 2020?

20 popular tax deductions and tax credits for individualsStudent loan interest deduction. … American Opportunity Tax Credit. … Lifetime Learning Credit. … Child and dependent care tax credit. … Child tax credit. … Adoption credit. … Earned Income Tax Credit. … Charitable donations deduction.More items…

Is new tax regime better than old?

The pros of the new regime are as follows: Reduced tax rates and compliance: The new regime provides for concessional tax rates vis-à-vis tax rates in the existing or old regime. Further, as most of the exemptions and deductions are not available, the documentation required is lesser and tax filing is simpler.

What is the tax slab for 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22Taxable incomeTax Rate (Existing Scheme)Tax Rate (New Scheme)Up to Rs. 2,50,000NilNilRs. 2,50,001 to Rs. 5,00,0005%5%Rs. 5,00,001 to Rs. 7,50,00020%10%Rs. 7,50,001 to Rs. 10,00,00020%15%3 more rows

Is new tax regime mandatory?

An individual is required to fill and submit this form at the time of filing income tax return (ITR) if he/she opts for the new tax regime for a particular financial year. A new optional tax regime was announced by the government in the Finance Act, 2020.

Which tax regime is good old or new?

The pros of the new regime are as follows: Reduced tax rates and compliance: The new regime provides for concessional tax rates vis-à-vis tax rates in the existing or old regime. Further, as most of the exemptions and deductions are not available, the documentation required is lesser and tax filing is simpler.

Is 80c applicable in new tax regime?

Under the new tax regime, an individual cannot avail tax benefit under section 80C on the contribution made to his/her PPF account. … Further, any maturity amount received from the PPF account will be exempted from tax in the new tax regime.”

Who will benefit from new tax slabs?

Anyone paying taxes without claiming exemptions under the existing system can benefit from paying a lower upfront rate of tax. For instance, taxpayers having gross total income of up to Rs 12 lakh have to pay more under the old system if he/she has investments less than Rs 1.91 lakh.

Which exemptions are removed in Budget 2020?

What’s out Some of the 70 exemptions and deductions you won’t get in new regime.Section 80C investments.House rent allowance.Housing loan interest.Leave travel allowance.Medical insurance premium.Standard deduction.Savings bank interest.Education loan interest.

Is there any standard deduction for FY 2020 21?

Therefore, the taxpayer can claim a standard deduction of Rs. 40,000* or the amount of pension, whichever is less. *Increased to Rs 50,000 for FY 2019-2020(AY 2020-21) through the Interim Budget 2019.

How can I save tax on 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.