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. 50,000 shall be Claimed under Section 80D).
We can see in the above example that the old tax regime is beneficial to Taxpayer 1 as taxes are less by INR 37,440. In case of taxpayer 2, where deductions for HRA and LTA are not applicable, the new tax regime is more beneficial by INR 15,600.
Rule 21AC provides for filing of Form NO. 10IE, ... In short, a person not having income from business/profession opting to pay tax under the new tax regime can directly exercise the option under section 115BAC in the Income Tax return ITR 1 or ITR 2 and is not required to file Form 10IE.
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.
Form 10-IC is required to filed only if a Domestic Company chooses to pay tax at concessional rate of 22% under Section 115BAA of the Income Tax Act,1961.
The new income tax regime is optional, and you can still opt for the old (existing) regime. You cannot opt for the new regime, if you have any business income in the applicable FY. The rates of surcharge and cess in the new income tax regime are same as those in the old (existing) regime.
The option of new tax regime is available to all individuals and HUFs. This is optional. Under the new tax regime tax is payable at lower slab rates on the income up to Rs. ... If you wish to opt for the new tax regime you have to forgo various tax deductions and exemptions otherwise available under old regime.
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.
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.
From the FY 2020-21 the benefit under section 80TTB will only be available under the old tax regime and taxpayers opting for new tax regime cannot claim this benefit while filing ITR.
Individuals with business income will not be eligible to choose between the two regimes every year. Once they select a new tax regime, they have only once in a lifetime option for switching back to the old regime. Once they switch back to the old regime, they won't be able to choose a new regime anytime in future.
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.
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.
[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.
Step 1: Log in to the e-Filing portal using your user ID and password. Step 2: On your Dashboard, click e-File > Income tax forms > File Income Tax Forms. Step 3: On the File Income Tax Forms page, select Form 10-IC. Alternatively, enter Form 10-IC in the search box to file the form.
Non-submission of 10-IC is a procedural mistake on part of the company, excluding revenue loss. The income tax portal does not accept submitting 10-IC for A.Y 20-21 so the firms would not submit it as a late filing.
For the AY 2020-21, the due date stands extended to 15th February 2021. Once the company opts for section 115BAA in a particular financial year, it cannot be withdrawn subsequently.
As per the laws, the employees have to choose between the old and the new tax regime and inform their employers about their choices, however, if one is not certain with the choice then he/she can certainly change his/her decision at the time of ITR filing.
Section 80TTB is a provision whereby a taxpayer who is a resident senior citizen, aged 60 years and above at any time during a Financial Year (FY), can claim a specified amount as a deduction from his gross total income for that FY. This Section is applicable w.e.f. 1st April 2018.
As per the Income Tax rule, losses from business income (non-speculative) gets set off against IFOS income. Hence in your case section, 80TTA is not being picked up OR being picked up partially since it is being set off against your non-speculative losses. ...
Can senior citizens claim both 80TTA and 80TTB? No, a senior citizen can claim deduction u/s 80TTA only. Who is eligible for an 80tta deduction? An individual taxpayer and a Hindu Undivided Family (HUF) are eligible for an 80TTA deduction.
Hi, Section 115BAC is the newly inserted section in the Income Tax Act, 1961 that deals with the new income tax regime. This section and alternate tax regime was introduced in U nion Budget 2020 and is applicable to individuals and Hindu Undivided Families (HUFs) only.