What Are The 70 Exemptions Removed In Budget 2020?

Which regime is better for income tax?

New taxation regime is better for employees with less salary and less investments resulting in lesser deductions and exemptions..

Is NPS applicable in new tax regime?

Section 80CCD(2) pertains to contributions made by the employer into the employee’s account of a notified pension plan such as National Pension System (NPS). … This can well be set-off on account of the loss of Standard Deduction of Rs 50,000 in the new tax regime.

Is 80CCF removed?

Not only has the finance minister kept the tax-saving limit under Section 80C unchanged, but the deduction under Section 80CCF for infrastructure bonds has been removed. This will reduce the total tax saving from the current Rs 1.2 lakh to Rs 1 lakh and push up the payable tax for individuals.

Which exemptions are removed in Budget 2020?

What’s out Some of the 70 exemptions and deductions you won’t get in new regime.Section 80C investments.House rent allowance.Housing loan interest.Leave travel allowance.Medical insurance premium.Standard deduction.Savings bank interest.Education loan interest.Feb 5, 2020

Which deduction is still allowed for 2020?

(xii) Deduction under section 35AD or section 35CCC; (xiii) Deduction from family pension under section 57(iia); (xiv) Any deduction under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc).

Is 80C removed in Budget 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … However, all without deductions.

What is upto 5 lakhs tax?

Read more news onIncomeTax liabilityUp to Rs 2.5 lakh0Between 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 2000Total tax liabilityRs 14,5001 more row•Feb 28, 2020

Is 5 year FD tax free?

Tax-Saving FD AccountMany risk-averse individuals utilise the tax-saving FD accounts with a minimum lock-in period of five years to save income tax. Such deposits gain tax deduction under section 80C of the Income Tax Act, 1961.

What are the exemptions for income tax 2020?

You can claim the following tax deductions in schedule DI: Deductions for tax-saving investments under section 80C, 80CCC and 80CCD. Deduction for payments such as medical insurance and expenses under section 80D, 80DD and 80DDB. Interest on housing and other eligible loans under section 80E, 80EE, 80EEA and 80EEB.

What are the exemption for income tax 2020 21?

Income Tax Slab FY 2020-21 for a non-resident taxpayer who is 35 years of age with an income of ₹ 15,00,000. The no-tax limit or the basic exemption limit for non-residents is ₹2,50,000 irrespective of their age. This is in addition to the surcharge that is 10% of tax where the total income exceeds Rs.

What all exemptions are removed from income tax?

In the new regime most deductions such as section 80C (investments in Provident Fund, National Pension Scheme etc), 80D (deduction claimed on the paid medical insurance premium), standard deduction of Rs 50,000, have been removed. There is, however, one deduction which can be claimed even under the new regime.

Which income is tax free?

According to new and old tax regimes, an individuals income below ₹ 2.50 Lakh is exempted from tax. However, you can claim tax rebate on income upto ₹ 5 Lakh and make it tax free.

What changed for taxes in 2020?

The IRS recently extended the deadline for all federal tax returns and payments to May 17, 2021. The standard deduction for 2020 increased to $12,400 for single filers and $24,800 for married couples filing jointly. Income tax brackets increased in 2020 to account for inflation.

What are the 70 exemptions removed?

What’s out: Here are a few of the 70 exemptions and deductions you won’t see in the new regime- Section 80C investments, house rent allowance, home loan interest, leave travel allowance, medical insurance premium, standard deduction, savings account interest, education loan interest.

What is the 80C limit for 2020 21?

Income Tax Deductions in IndiaSectionsIncome Tax Deduction for FY 2019-20 (AY 2020-21)Limit for FY 2019-20 (AY 2020-21)Section 80CInvesting into very common and popular investment options like LIC, PPF, Sukanya Samriddhi Account, Mutual Funds, FD etcUpto Rs 1,50,000Section 80CCCInvestment in Pension Funds32 more rows•Dec 5, 2020

What is the maximum tax exemption?

This year’s Union Budget increased the Section 80C tax exemption limit from Rs 1 lakh to Rs 1.5 lakh. Besides, it increased the deduction limit for interest paid on loan for a self-occupied house from Rs 1.5 lakh to Rs 2 lakh. This is apart from the increase in the basic exemption limit from Rs 2 lakh to Rs 2.5 lakh.

Which slab is better for income tax?

Also, those with an annual income of Rs. 7.5 lakhs to Rs. 10 lakhs will have to pay a 15% income tax….Old vs New: A Comparison For Different Slabs.OLD RATES (with exemptions)ANNUAL INCOMENEW RATE (without exemptions)5%Rs.2.5 – 5 lakh5%20%Rs.5 – 7.5 lakh10%Rs. 7.5 – 10 lakh15%30%Rs. 10-12.5 lakh20%3 more rows•Nov 6, 2020

Can we claim HRA in new tax slab?

HRA is a major component of an employees’ salary as it varies between 40-50% of basic salary. So the tax benefit available on HRA is a big relief for salaried individuals. If you opt for the new tax regime, that aims to tax your income at lower slab rates, you will have to forego the HRA benefit.