TAX 2020

  Hello Tax Payers,       

  Are you a salaried employee? This is must for you!

       The Budget 2020 has made the tax structure more complicated by adding new tax slabs. The government has introduced a tax regime that takes away 70 out of 100 deductions in lieu of an easy tax structure. Here is the list of tax deductions you can still avail of in the new tax regime.  As per the Government report, the deductions under Article 80 of the IT Act are not part of the new tax regime. These include insurance premiums and certain pension funds, Housing rent allowance and standard deductions are not available anymore.

New Tax Slab mentioned Below;

1.       Up to Rs 2,50,000 – Nil

2.       From Rs 2,50,001 to Rs 5,00,000 – 5 per cent

3.       From Rs 5,00,001 to Rs 7,50,000 – 10 per cent

4.       From Rs 7,50,001 to Rs 10,00,000 – 15 per cent

5.       From Rs 10,00,001 to Rs 12,50,000 – 20 per cent

6.       From Rs 12,50,001 to Rs 15,00,000 – 25 per cent

7.       Above 15 lakh – 30 per cent

The income tax deductions still available in the new regime include:

• Death-cum-retirement benefit

• Commutations of pensions
• Leave encashment on retirement
• Amount received on VRS up to Rs 5 lakh
• Employee Provident Fund money
• Money received as scholarship for education
• Cash received as awards constituted in public interest
• Short-term withdrawals and maturity amount from the National Pension Scheme.

Compare Old vs New Tax Slab:

Those who have exempted their Tax under Section 80, will not workout now. Please be attentive!!