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Optional Income Tax Regime for Individuals under Union Budget 2020

  • Admin
  • 06 Mar, 2020

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. 

For more information or clarification, you may write to us on legal@corpcode.in

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