Automated Income Tax Preparation Excel based Software with New and Old Tax Regime Introduced in Budget 2020
Boost Indian taxpayers were hoping for lower Income Tax limit deductions, in new tax regime. This Income Tax rates but took away all the deductions and exemptions available to the taxpayers, and it was announced that the taxpayer can choose between the old and the U/s 115 Back.
So, let’s start. while our current tax system has high Income Tax Act many of the Income Tax. The Government of India through the addition of clauses to the taxable income and hence pay less exemptions are part of your salary that you don’t pay taxes on like HRA, LTA deductions involve investing, saving, or spending on specific items. In fact, by claiming deductions under Section 80C, you can bring down your taxable income by rupees 1.5 lakh. Apart from this, there are several other sections that let you claim deductions on things, ranging from interest on your home and education loans to premiums you pay for health insurance.
Here are the most common exemptions and deductions availed by Indian taxpayers, these exemptions and deductions together can bring down your taxable income by lakhs. However, it also means that every year, you have to find ways to optimize your salary and investments, so as to keep your taxable income to the minimum.
Now, let’s look at the new tax regime. The Income Tax, the Income Tax rates have lowered in the sub rupees 15 lakh range. 2nd, all the exemptions and deductions that were being used by taxpayers in the existing regime won’t be available in the new regime.
Here is a comparison between the existing, and the new tax slabs.