Can I opt for new tax regime?

Asked by: Terence Padberg  |  Last update: February 9, 2022
Score: 4.7/5 (11 votes)

Taxpayers can file the form through the income tax department portal to opt for the new tax regime for FY 2020-21 and onwards. The form will be filed using either the digital signature or through an Electronic Verification Code (EVC).

Can we choose between old and new tax regime?

An employee may choose between old and new tax regimes at the beginning of the year and intimate the employer, or at the time of joining new employment during the year. However, at the time of filling the personal tax return, the employee can change the tax regime.

Can we switch tax regime every year?

The finance bill 2020 allows salaried individuals and pensioners with no business income to switch between the two tax regimes every assessment year as per their prevailing financial situation.

Which tax regime is better for 20 lakhs?

For a salary ranging between Rs 20 lakhs and Rs 25 lakhs, the applicable tax rate under the new tax regime would be the highest, that is 30%.

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.

New Tax Regime vs Old Tax Regime: Comparison, Calculation & Tax Slabs 2020-21, (Hindi Subtitles)

42 related questions found

Should I opt for Section 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. 8,50,000 with your eligible Deduction under 80C. The selection of New Tax Regime of Section 115BAC is not advisable up to your income Rs.

Which is better old or new tax regime 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 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.

Which income tax regime is better Quora?

There is no better slab. For those who invest traditionally as in the old regime, the old slab saves more tax. For those who go for riskier investments out of their money than tax saving investments, the new slabs save more 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.

Who can opt for Section 115BAC?

An employee, having income other than the income under the head “profits and gains of business or professions” and intending to opt for the concessional rate under section 115BAC of the act, may intimate the deductor, being his employer, of such intention for each previous year and upon such intimation, the deductor ...

How can I save tax if I earn 13 lakh?

1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)
  1. Unit Linked Insurance Plans (ULIPs)
  2. Pension or Annuity Plans from Life Insurance Companies.
  3. Public Provident Fund (PPF) & Employee Provident Fund (EPF)
  4. New Pension Scheme Tier-I Account.
  5. Senior Citizen Savings Scheme.

Can I deposit 15 lakhs in my account?

Cash deposits in bank accounts: CBDT has made it mandatory for a bank or a cooperative bank to report cash deposits aggregating to Rs 10 lakh or more during a financial year, in one or more accounts (other than a current account and time deposit) of a person.

How can I avoid paying tax on my salary?

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.

How can I save tax on 12 lakhs?

  1. 1) Standard Deduction of Rs. ...
  2. 2) Profession Tax of Rs. ...
  3. 3) Investment in 80C for taking full benefit of 1,50,000: ...
  4. 4) Investment in National Pension Scheme up to Rs. ...
  5. 5) Deduction of NPS contribution by employer under section 80CCD(2) up to Rs. ...
  6. 6) Home Loan Interest and House Rent Allowance Rs.