Union Budget 2020 introduced good news to Individual tax payers in a different way by offering an optional income tax regime. Against the expectations of Indian tax payers, there is no change in income tax slab rates in Budget 2020. Instead, a new tax regime is introduced if individual tax payer wish to opt for it. New tax regime offers reduced tax rates and it comes with a condition that no exemption or deduction is taken by tax payer.
For a layman, it is certain that such tax regime would be a nightmare to understand considering the complexities involved in understanding the benefit analysis under erstwhile tax regime and new tax regime offering reduced tax rates by adjustments of deductions/exemptions.
New tax regime offering reduced tax rates is as under:
Note: Individuals having taxable income up to INR 5,00,000 continue to be exempt from tax liability under the existing and new tax regimes.
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