The exceptions and deductions are not applicable here. This being said, the new tax system has its own benefits and negative marks.
The primary valid statement about the new system is that it is not totally replacing the old or a rather current system. The administration is not forcing the new rates and the new immediate tax system on the taxpayers.
Also, the taxpayers can now choose where they want to save their cash. They don't have to scramble for tax-saving plans and insurances or park their cash in avenues which are not aligned with their financial goals, just to save tax
Which Exceptions And Deductions Are Allowed And Which Have Been Eliminated?
Presently the inquiry is in the event that you pick the new tax system, what are the exclusions and deductions you wouldn't have the option to claim further? Here's a list
• Leave Travel Allowance
• Standard deduction of Rs 50,000 that was available for salaried individuals
• Deductions available under Section 80TTA/TTB ( on interest from savings account stores )
• Entertainment allowance deduction and professional tax ( For government workers)
• Tax alleviation on interest paid on home loan for self-involved or vacant property u/s 24
• Deduction of Rs 15000 allowed from a family annuity under clause (iia) ( Section 57)
• Tax-saving investment deductions under Chapter VI-A (80C,80D, 80E,80CCC, 80CCD, 80D, 80DD, 80DDB,, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, and so on) (Aside from, deduction under Section 80CCD(2)— bosses commitment to NPS and Section 80JJA) and so on. These popular tax saving investment alternatives include ELSS, NPS, PPF, the tax break on insurance expense among others.
Feature of this Excel Utility:-
1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)
2) This Excel Utility has an option where you can choose your option as New or Old Tax Regime
3) This Excel Utility has a unique Salary Structure for West Bengal Government Employee’s Salary Structure after ROPA 2019.
4) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
5) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
6) Individual Salary Sheet
One can in any case claim deduction under sub-section ( 2) of section 80CCD which is basically business' commitment towards the representative's account in NPS and section 80JJAA ( for new work). Also, note that if the representative's commitment to EPF and NPS surpasses more than Rs 7.5 Lakh, in the financial year being referred to, then the worker is liable to pay tax. Here's a list of important exclusions that are retained in the new system
In what manner Will we realize Which Plan Is More Beneficial to the TaxPayers?
The two systems have their own arrangements of upsides and downsides. The old system has many exclusions and deductions under various sections – availing a couple of these necessary individuals to invest in tax saving investment alternatives, which taught a decent habit of investing. Then again, the new system gives individuals greater adaptability and attempts to improve the cycle. In the event that you are somebody who was claiming a lot of deductions under the old system, you can probably save better sticking with the same system, according to the calculations. In the event that you weren't making any tax-saving investments or claiming any deductions earlier too, then maybe the new system may demonstrate beneficially. It also varies based on which slab you are in as well. Nonetheless, since the system is new, it makes sense to counsel an equipped tax master who can recommend the optimal tax-saving course for you.
Finance Minister Nirmala Sitharaman in her financial the plan has said that gradually the exceptions and deductions will be explored and decreased in number as the administration wants a straightforward Income tax the system in the nation. Whether or not the new system is gotten well and adopted by the taxpayers in the upcoming financial year, will say a great deal about the tax laws that may get actualized later on.
Feature of this Excel Utility:-
1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)
2) This Excel Utility has an option where you can choose your option as New or Old Tax Regime
3) This Excel Utility has a unique Salary Structure for Government and Non-Government Employee’s Salary Structure.
4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2020-21 (Update Version)
5) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2020-21
6) Automated Income Tax Revised Form 16 Part B for the F.Y.2020-21
7) Individual Salary Sheet
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