As per the Budget 2020 has introduced a new style of Income Tax Calculation in the name of New and Old Tax Regime which under Section 115 BAC | In this Section any taxpayer can give their option as he is willing to get the New Tax Regime or Old Tax Regime | The taxpayer should intimate to his employer that which tax regime he opting through the New introduced Form 10-IE| If any employee opting the New Tax Regime he can not get any income tax benefits as per the Income Tax Act but he can get the New Income Tax Slab Benefits in new the new tax slab. If any employee opting the Old Tax Regime he can get the all benefits as per the Income Tax Act| Given below mentioned the main sum benefits to the taxpayers |
1. Exemption: Exemption: One need not pay any tax on such income. Interest income on PPF and REC tax-free bonds is fully exempt from tax. (If taxpayer opting in Old Tax Regime)
2. Deduction: Exemptions u/s 80C up to Rs 1,50,000, mediclaim for self/parents u/s 80D, interest on the loan for the higher education of self/relative u/s 80E, donations made u/s 80G are deductible from the taxable income. (If taxpayer opting in Old Tax Regime)
3. Rebate: After income tax is computed, the taxes rebate Rs. 12,500/- the actual tax payable is reduced if a rebate is allowed on account of specific investment that was made. (If taxpayer opting in Old Tax Regime)
4. Allowances: Paid in addition to salary, to meet specific expenses. Allowances like as DA, house rent, LTA, education, medical, transport etc.
5) Exemption from the Bank/Post Office Savings Interest U/s 80TTA Max Rs.10,000/-(If taxpayer opting in Old Tax Regime)
