Question: Is 80c Applicable In New Tax Regime?

What is the new tax regime 2020?

Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions….Income tax slabs under the new tax regime for all individuals for FY 2020-21 (AY 2021-22)Income Tax SlabTax RateRs 12.5 lakh to Rs 15 lakh25%Rs 15 lakh and above30%5 more rows•5 days ago.

Which is the best tax regime?

Calculations show that salaried individuals claiming a large number of exemptions (80C, 80D, interest on housing loan, HRA and LTA etc.) are likely to be better off in the existing income tax regime.

Which tax regime is better for 20 lakhs?

If the total is equivalent to or exceeds Rs 2.5 lakh, then he/she would pay the same or less tax in the existing tax regime vis-à-vis the new regime. On the other hand, if the total tax-exemptions and deductions claimed are less than Rs 2.5 lakh, then the individual would be better off opting for the new tax regime.

Is NPS exempted in new tax regime?

The tax break on contribution to National Pension System (NPS) made by the employer is still available under the new tax regime. The tax-benefit is available under section 80CCD (2). Further, Budget 2020 has proposed a monetary limit on the tax-exempt contribution from the employer to NPS account.

What is the income tax on a salary of Rs 5 lakhs per annum?

As per current income tax laws, a person is eligible for tax rebate up to Rs 12,500 under section 87A, if the net taxable income does not exceed Rs 5 lakh….Synopsis.IncomeTax liabilityBetween Rs 2.5 lakh and Rs 5 lakh5% of Rs 2.5 lakh = Rs 12,500Income above Rs 5 lakh (Rs 10,000)20% of Rs 10,000 = Rs 20003 more rows•Feb 28, 2020

Which deductions are allowed in new tax regime?

3. Exemptions and deductions not claimable under the new tax regimeThe standard deduction, professional tax and entertainment allowance on salaries.Leave Travel Allowance (LTA)House Rent Allowance (HRA)Minor child income allowance.Helper allowance.Children education allowance.Other special allowances [Section10(14)]More items…•

Is rebate available in new tax regime?

Can I still claim tax rebate of Rs 12,500 under section 87A in the new tax regime? Yes, as per the budget proposals, a taxpayer can still claim tax rebate of Rs 12,500 if his/her net taxable income does not exceed Rs 5 lakh in a financial year.

Which tax regime is beneficial Old or new?

Calculations show that salaried individuals claiming a large number of exemptions (80C, 80D, interest on housing loan, HRA and LTA etc.) are likely to be better off in the existing income tax regime.

Can I change from old tax regime new?

Effectively, you can switch between new and old tax regime at the time of filing ITR. … CBDT also clarifies that even if one opts for New Tax Regime and the same intimation is made to employer or Deductor, it shall be only for the purposes of TDS during the previous year and cannot be modified during that year.

How can I save tax on my new tax regime?

If you’re shifting to new regime, reconsider tax-saving productsThe case for one-time tax-saving investment.Equity-linked savings scheme (ELSS): Investment in ELSS funds, which are diversified equity funds, offers deduction up to ₹1.5 lakh under Section 80C of the Income-tax Act, 1961. … Public Provident Fund (PPF): The other investment product you can look at is PPF.More items…•

Is 30 lakhs a good salary in India?

Every fresher coming to search for a job mostly gets paid among 4 to 5 lakhs per annum in India except NIT and IIT grads who generally get paid 7 to 8 lakhs per annum. … But after almost 5 to 6 years of experience and with skills a person in India can get 25 lakhs to 30 lakhs per annum.

How can I save tax if I earn 20 lakh?

Tax DeductionsSection 80C Exemption – 1,50,000.NPS 80CCD(1B) Tax Exemption – 50,000.Medical Insurance (Self & Parents) – 60,000.Interest on Education Loan – 50,000.