The Finance minister announced budget 2020. New Budget introduced a list of reconciling to the Income-tax regime. The new and old tax rates are as follows:-
|NEW %||OLD %|
|Up to RS.2.5 lakhs||No tax||No tax|
|RS. 2.5 – RS. 5 lakhs||5||5|
|RS. 5 – RS7.5 lakhs||10||20|
|RS 7.5 – 10 lakhs||15||20|
|RS.10 – RS 12.5 lakhs||20||30|
|RS. 12.5 – RS 15 lakhs||25||30|
|Above Rs 15 lakhs||25||30|
Truly, the new budget has brought down the tax rates. In any case, regardless of whether you make the switch or not thoroughly rely on you.
But which option you choose or opt?
On the off chance that you are opting to switch, at that point, you should say goodbye to all the exemptions which you got under the old regime. Fundamentally, the Administration expects to scrap off the exemptions over the long haul. So the new tax regime doesn’t give any exemptions, for example, section 80C, 80D, and so forth which was before given under the personal tax act 1961. Taxpayers who have now changed to the new regime can make it back to the old one in the following money related year. To put it plainly, you are given the option to choose between the two options consistently.
Download Automated Income Tax Revised Form 16 Part B for the F.Y.2019-20 which can prepare at a time 50 Employees Form 16 Part B
So which Tax Chunk would it be advisable for you to opt for?
The individuals who have a home credit to pay may opt to adhere to the old one. Then again, the individuals who wish to confront less desk work may make a fast trade to the new one. So the response to it relies upon singular needs and necessities.
Presently let me rapidly short you through the advantages and disadvantages of the new budget in correlation with the old one. I trust that it will assist you with settling on your choice and choose between the tax regimes.
Download Automated Income Tax Preparation Excel Based Software All in One for the Non-Government (Private) Employees for the Financial Year 2020-21 and Assessment Year 2021-22U/s 115BAC
Feature of this Excel Utility:-
- This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) This Excel Utility has the all amended Income Tax Section as per Budget 2020
3) Automated Income Form 12 BA
4) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
5) Individual Salary Structure as per the Private Concern’s Salary Structure.
6) Individual Salary Sheet
7) Individual Tax Computed Sheet
8) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
9) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21