Is 80c Removed?

What is the new tax slab for 2020?

Income Tax Slabs for Individuals below 60 years of age in FY 2020-21 (AY 2021-22)Income Tax SlabTax Applicable as per New RegimeRs.2,50,001 – Rs.

5,00,0005.00%Rs.5,00,001 – Rs.

7,50,000Rs.12500 + 10% of total income exceeding Rs.5,00,000Rs.7,50,001 – Rs.

10,00,000Rs.37500 + 15% of total income exceeding Rs.7,50,0004 more rows.

How can I save my income tax 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

How do you calculate income tax for the financial year 2020 21?

Therefore, your net taxable income will be Rs 15, 40,000 (Rs 16 lakh minus Rs 60,000). The income tax liability in the new tax regime will be calculated on Rs 15.40 lakh….S. No.Income slabsIncome tax rate (%)5Between Rs 10,00,001 and Rs 12.5 lakh20%6Between Rs 12,50,001and Rs 15 lakh25%7Above Rs 15 lakh30%4 more rows

Is 80c removed in 2020?

[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. … However, all without deductions.

Who is not eligible for standard deduction?

Not Eligible for the Standard Deduction An individual who was a nonresident alien or dual status alien during the year (see below for certain exceptions) An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period.

Is tax slab increased to 5 lakhs?

As per current income tax laws, a person is eligible for tax rebate up to Rs 12,500 under section 87A, if the net taxable income does not exceed Rs 5 lakh. Therefore, the tax liability in such a situation will be zero.

What is the income tax slab for 2020 21?

INCOME SLAB AND TAX RATES FOR F.Y. 2020-21/A.Y 2021-22Taxable incomeTax Rate (Existing Scheme)Tax Rate (New Scheme)Rs. 7,50,001 to Rs. 10,00,00020%15%Rs. 10,00,001 to Rs. 12,50,00030%20%Rs. 12,50,001 to Rs. 15,00,00030%25%Above Rs. 15,00,00030%30%3 more rows

Is there any standard deduction for FY 2020 21?

Therefore, the taxpayer can claim a standard deduction of Rs. 40,000* or the amount of pension, whichever is less. *Increased to Rs 50,000 for FY 2019-2020(AY 2020-21) through the Interim Budget 2019.

How is tax calculated?

Tax is charged as a percentage of your income. The percentage that you pay depends on the amount of your income. The first part of your income, up to a certain amount, is taxed at 20%. This is known as the standard rate of tax and the amount that it applies to is known as the standard rate tax band.

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.

Which income tax slab is best?

Income-tax rates under the new tax regime v/s the old tax regimeIncome slabs (Rs)Tax Rate(Old Regime)Tax Rate(New Regime – devoid of exemptions & deductions)2.5-5 lakh5%5%5-7.5 lakh20%10%7.5-10 lakh20%15%10-12.5 lakh30%20%3 more rows•Feb 7, 2020

What is the standard deduction for senior citizens in 2020?

The standard deduction for 2020 is $12,400 for singles and $24,800 for married joint filers. There is also an “additional standard deduction,” for older taxpayers and those who are blind. A married filer who is blind or aged 65 and over can claim $1,300 for themselves.

What is the tax slab for 2019 2020?

Tax Rates for Individuals as per budget 2019-2020Income Tax Slab (in Rupees)Tax Rate for Individual Below the Age Of 60 Years0 to 2,50,000*Nil2,50,001 to 5,00,0005% of total income exceeding 2,50,0005,00,001 to 10,00,000Tax Amount of 12,500 for the income up to 5,00,000 + 20% of total income exceeding 5,00,0001 more row•Dec 11, 2019

What are current tax slabs?

RelatedTaxable income slabsIncome tax rates and cessUp to Rs 2.5 lakhNilRs 2,50,001 to Rs 5,00,0005% of (Total income minus Rs 2,50,000) + 4% cessRs 5,00,001 to Rs 10,00,000Rs 12,500 + 20% of (Total income minus Rs 5,00,000) + 4% cessRs 10,00,001 and aboveRs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cess

How do I claim 50000 standard deduction?

Maximum Limit for Standard DeductionSalaried individuals can claim standard deduction up to Rs 50,000 on their income.Pensioners can claim Rs. 50,000 or their total annual pension as standard deduction, whichever is lower.