Financial plan 2020 has presented the new tax regime
for F.Y 2020-21 notwithstanding the old tax regime. F.Y 2020-21 onwards the
taxpayer can pick the best tax regime dependent on the tax-sparing potential,
reasonableness, and quick needs.
This article covers
1. Rates of taxes and Tax Chunks
Examination
2. Availability of Deductions
3. Increased bring home Compensation
4. Reduced compliances and Administrative
work
5. How to choose which Tax Regime is
correct?
1. Paces of taxes and Tax Chunks Examination
The new regime accommodates concessional paces of
taxes for products chunks while old regime accommodates standard paces of taxes
2. Accessibility of Deductions
The new tax regime doesn't permit the taxpayer to
profit certain deductions and exceptions while the old regime gives that the
a taxpayer can guarantee deductions and exclusions which are accessible to him.
A portion of the deductions that the taxpayers will lose on the
off chance that they select the new regime are
1. Standard Allowance of Rs 50000
2. House Lease Remittance (HRA)
3. Leave Travel Recompense (LTA)
4. Entertainment Recompense
5. Professional Tax (PT)
6. Interest paid on Lodging Credit u/s 24
7. 80C Deductions like LIC, Home Credit
Head, PPG, NSC and so on
8. 80D Allowance i.e., Medical coverage
paid for self and family
9. 80DD and 80DDB identified with
Inability
10. Interest paid on Training advance u/s
80EE
11. Donations u/s 80G, 80GGA, 80GGC
Feature of this Excel
Utility:-
1) 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 Calculation Income Tax House Rent Exemption U/s 10(13A)
4)
Individual Salary Structure as per the West Bengal
Govt. Employees Salary Pattern as per ROPA-2019
5)
Individual Salary Sheet
6)
Individual Tax Computed Sheet
7)
Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
8)
Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
10)
Automatic Convert the amount into the in-words without any Excel Formula
3. Expanded bring home Compensation
New Tax Regime gives a chance to build the bring home
pay of the taxpayer and isn't needed to contribute forthright, while the old
tax regime lessens bring home as the taxpayers are needed to put resources into
certain drawn-out ventures to profit the advantages.
4. Decreased compliances and Administrative work
Under New tax regime, the taxpayer need not stress
over the documentation and compliances as the majority of the exclusions and
deductions are not accessible. While the taxpayers under the old regime need to
have all the proofs, and by and large, the representative needs to submit such
proofs to the business for asserting deductions and exceptions
5. Which Tax Regime to be Chosen?
There is a ton of disarray with respect to which
regime to pick. In any case, choosing the correct regime helps in the advancement
of taxes and riches creation in future. The Taxpayer needs to assess both the
regimes relying upon the salary, deductions, exclusions and so on and select
the correct regime.
Download Automated Income Tax Salary Arrears Relief Calculator U/s 89(1) with Form 10E for the F.Y.2020-21 as per New and Old Tax Regime (System) U/s 115 BAC [This Excel Utility
can prepare from the Financial Year 2000-01 to Financial Year 2020-21 (Up-to-date
Version)
The tools accessible to effectively choose the correct tax regime
are to utilize an
1)
Old versus New Tax Calculator or
2)
Taking a Specialist Tax Discussion from EZ Tax. into a survey, propose the
right one.
