OLD VS NEW INCOME TAX REGIME

Dear Friends, 

My this blog is related to tell you about the difference in the old and new tax regime. As you know that Budget 2020 has been declared and various changes has been introduced in it. So today I am going to discuss about the Old and New Tax Regime.

It will help you to make a selection between old and new tax regime.

Let's start:

• New Tax Regime is helpful for those taxpayers who have Income from Salaries/Pension, Income from House Property etc. it means not available for those taxpayers who have Income from Business and having any carry forward losses. 

• In New Tax Regime an individual have to undergo main deductions and exemptions under like:

• Standard Deduction of Rs. 50,000 to salaried tax payers, 

• House Rent Allowance for individuals staying in rented accommodation, 

• Interest on housing loan for self-occupied property, 

• Leave Travel Allowance twice in block of four years, 

• the most commonly claimed deduction under section 80C for provident fund contribution, life insurance premium, school tuition fee for children, ELSS, PPF etc. 

• and under section 80D for medical Insurance Premium 

• Deduction of up to Rs 2 lakh on Home Loan interest 
• Tax benefits on donations to NGOs under section 80G
• Tax benefits on interest on education loan under Section 80E and etc.

• In the New Tax Regime around 70 tax exemptions and deductions (including above) has been removed.
  
  
• In the New Tax Regime 7 Income Tax slabs has been introduced as compare to 4 Income Tax Slabs in Old Tax Regime.

• If a person once selected a New Tax Regime there is no option to opt out from New Tax Regime and move to Old Tax Regime. So it is better to choose the option wisely.

I hope it will be helpful to you. 

Thanks and Regards

Kulvinder Kaur

B.Com(H), MBA (Finance)

9871580806,8826566751

rightsteptoinvest@gmail.com