Best answer: Which deductions are allowed in new tax regime?

What deductions can be claimed in new tax regime?

From FY 2020-21, an individual can continue with the old or existing tax regime and avail common deductions such as section 80C, section 80D etc. of the Income-tax Act, 1961. Else, she/he can opt for the new, concessional tax regime without any commonly availed deductions and tax exemptions.

Is 80C deduction available in new tax regime?

From FY 2020-21, an individual can continue with the old or existing tax regime and avail common deductions such as section 80C, section 80D etc. of the Income-tax Act, 1961. Else, she/he can opt for the new, concessional tax regime without any commonly availed deductions and tax exemptions.

Is 80tta deduction allowed in new tax regime?

Basically, all deductions allowed under chapter VI-A such as 80C, 80CCC, 80CCD, 80CCG,80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB and 80G, 80GG, 80IA, 80IAB, 80IAC, 80IB, etc are not claimable.

Which deductions are not available in new tax regime?

In the new tax regime, one will not get the deduction available in respect of EPF as well as standard deduction of Rs. 50000 for salaried class. These and other deductions such as those available against home loan, insurance premium will in the new tax regime not help you to lower your tax liability.

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Can we claim standard deduction in new tax regime?

Exemptions and deductions not claimable under the new tax regime. The following are the deductions and exemptions you cannot claim under the new tax system: The standard deduction, professional tax and entertainment allowance on salaries. Leave Travel Allowance (LTA)

Is new tax regime mandatory?

The new tax regime co-exists with the earlier tax system, and was made optional for taxpayers. … There is a 20 per cent tax for income between Rs 10 lakh and Rs 12.5 lakh, and 25 per cent for income between Rs 12.5 lakh and Rs 15 lakh against the existing rate of 30 per cent for each of these categories.

Which tax regime is better for 20 lakhs?

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%.

Is NPS exempted in new tax regime?

Since, it is not a part of one’s annual income, NPS scheme beneficiaries can claim income tax deduction on its employer’s contribution to its NPS account, even after opting for the new income tax regime.” He said that all those employees whose employer has implemented NPS scheme can claim this deduction even after …

Can I change from new tax regime to old?

How can I change to the old regime? Under the new concessional tax rate regime, individuals can offer their total income at lower slab rate prescribed, provided they forgo certain specified deductions and exemptions. … However, at the time of filing return of income, one may switch to the old regime.

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Is section 80g applicable in new tax regime?

Under the new income tax regime announced with Union Budget 2020, around 70 tax deductions and exemptions, including standard deduction, HRA, housing loan interest payments, education loan interest, expenses incurred on disability of self or dependent, cost of medical treatment of self or dependent, LTA, investments …

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