Are you opting for new tax regime U S 115BAC for salaried?

Asked by: Laurie Grady  |  Last update: February 9, 2022
Score: 4.8/5 (7 votes)

A salaried taxpayer can choose the new tax regime at the beginning of FY 2020-21 and intimate their employer. The employee cannot change their choice anytime during the financial year. However, they can change their choice when filing the income tax return in July 2021.

Should you opt for 115BAC?

The above table shows that it is beneficial to opt for the New Tax Regime of Section 115BAC if your Income is more than Rs. 12,25,000 with your eligible Deduction under 80C and Section 80D (it has been assumed that Deduction of Rs. ... The selection of New Tax Regime of Section 115BAC is not advisable up to your income Rs.

Are you opting for new tax regime U S 115BAC Quora?

Opting New Tax Regime will take away many exemptions such as HRA Exemption, etc and Deductions including Section 80C, 80D etc. From the assessment year 2021-22 (FY 2020-21), individual and HUF taxpayers have an option to opt for taxation under section 115BAC of the Act.

Are you eligible to claim exemption from salary income?

The employer may provide you education allowance for your children as part of your salary. Such allowance received by the employer towards children education is exempt from tax. However, the employee can claim maximum Rs. 100 per month as exemption or Rs.

Which tax regime is better old or new for salaried employees Quora?

Old regime is more beneficial when person falling into high tac bracket and eligible to claim multiple deduction such as HRA, 80C deduction. Whereas new regime beneficial, if a person do no want to invest and claiming very low or nil deduction.

How to File Income Tax Return Under New Tax Regime u/s 115bac with Form 10IE Filing on New Portal

40 related questions found

How do I opt for new tax regime Quora?

If senior citizen with no interest income, no savings etc. go for new regime. In short, if you already have maximum 80C of 150000, and paying rent/home loan, you stick with old only. If no loan/rent, consider if you have addnl deductions such as med insurance, edu loan, donations etc.

What is the difference between old and new tax regime Quora?

The old tax regime is with various deductions to save tax. One can make specific tax saving investments and income to the extent of those investments would be free from taxation. The new tax regime is without any deduction. One can avail lower rates of new tax regime and cannot claim any deduction further to save tax.

Which tax regime is better for 20 lakhs Quora?

Even if you don't have any home loan(both principal and interest are tax exempted upto a certain limit), education loan and 80CCD, old tax regime is better for middle class taxpayers and they could end up saving upto Rs. 15000/annum.

What is the benefit of new tax regime?

The new tax regime offers the flexibility to the taxpayer to invest their money as they prefer. With the new scheme, there is no obligatory requirement to invest in tax saving schemes and insurance plans which may not be in alignment with their financial goals.

Is HRA allowed in new tax regime?

Although it's a part of your salary, HRA, unlike basic salary, is not fully taxable. ... Thus, if you opt for the new income tax regime either in FY 2020-21 or FY 2021-22, then you will not be able to claim tax-exemption on HRA.

How can a salaried person reduce income tax?

Save Income Tax on Salary
  1. Deductions under Section 80C, Section 80CCC and Section 80CCD. Citizens of India can save tax under these 3 sections. ...
  2. Medical Expenses. ...
  3. Home Loan. ...
  4. Education Loan. ...
  5. Shares and Mutual Funds. ...
  6. Long Term Capital Gains. ...
  7. Sale of Equity Shares. ...
  8. Donations.

What are exemptions from salary income?

1. HRA Exemption for Salaried Employees. Many employers give House Rent Allowance (HRA) to their employees for them to reside at a good place. A portion of the House Rent Allowance given by an employer to an employee is exempted from the levy of the Income Tax and Income Tax is only levied on the remaining part.

What are exemptions in salary?

Salaried individuals, who live in a rented house/apartment, can claim house rent allowance or HRA to lower tax outgo. This can be partially or completely exempt from taxes. The income tax laws have prescribed a method for computing the HRA that can be claimed as an exemption. Read more about how to claim HRA exemption.

Does new tax regime include 80C?

For this financial year i.e. FY 2021-22, an individual can continue with the old or existing tax regime and avail common deductions such as section 80C, section 80D etc. of the Income-tax Act, 1961. Else, she/he can opt for the new, concessional tax regime without any commonly availed deductions and tax exemptions.

How can I save tax on my new tax regime?

So, if the annual basic salary of the employee is Rs 5 lakh, one can avail a deduction of up to Rs 50,000 if the employer contributes towards employees NPS account. Going forward, if the new tax regime becomes the norm, as an employee making use of Section 80CCD(2) may help them save taxes.

What are tax regimes?

The tax regime defines the tax slabs and rates. In 2020 the government introduced a new tax regime with higher tax rates but more options for tax savings. The new tax regime also gives taxpayers the option to select either old or new regimes making taxation all the more complicated.

How can I save tax if my salary is more than 20 lakhs?

Donations - Section 80G of the Income Tax Act also allows you to avail tax saving on 20L income for making donations to charities, NGOs and government-backed relief funds. The amounts donated to such organizations are entirely exempted from tax. Others - Section 80TTA allows you to avail deduction up to Rs.

How can we save tax for salary above 20 lakhs Quora?

How to save income tax when a salary is more than 20 lakhs per annum - Quora. Apart from the standard rebate of Rs 1.5 Lakhs U/S 80 C, you can look at contributing Rs 50,000 to NPS on your own every year, this contribution to NPS is eligible for an extra rebate upto RS 50,000 every year over and above 80C rebate.

How can we save tax for salary above 15 lakhs Quora?

Invest 1.5 L for 80C rebate, another 50,000 over and above this in NPS - these are the standard tax saving options. Opt for NPS through employer, the employer contributions will become the tax free component of your CTC.

Which tax slab is better for me Quora?

If you are not interested in saving for a long term then the new slab is good for you. If your income is below 6 lakh then the old slab is good for you and if your income in is above 19 lakh then the new income tax slab 2020 is better for you. I think there is no bigger difference in old and new slab.

Which tax regime should I choose Quora?

First you have to decide your status whether you are salaried person or having income from business. If you are salaried person and having a low income then new tax regime is best for you. Although you will have a option to switch the old scheme next year.