Budget 2020 Income Tax Rate Cut – Burning Issues – Free PDF Download

WHAT IS INCOME TAX SLABS?

• In India, income tax is levied on individual taxpayers on the basis of a slab system where different tax rates  have been prescribed for different slabs.
• Such tax rates keep increasing with an increase in the income slab.

IF YOUR INCOME IS UP TO 5 LAKH

• There will be no income tax, For people whose income is up to Rs 5 lakh per year.
• This is for both the new and the existing tax regime

IF YOUR INCOME IS ABOVE 5 LAKH

• Surcharge- 4%

• This scheme will co-exist with the existing tax structure and will be optional.
• While the existing tax system has four tax slabs, the new one has seven tax slabs.

BUT THERE IS A CATCH

• Individuals opting to pay tax under the new lower personal income tax regime
• Will have to forgo almost all tax Deductions they were claiming in the current tax structure.

INCOME TAX DEDUCTIONS

• It offers many opportunities for saving tax for the salaried class.
• With the help of these deductions and exemptions and, one could reduce  his/her tax

LIST OF THE MAIN EXEMPTIONS

• House rent allowance
• Leave travel allowance
• Home Loans
• Donations to charitable institutions
• Most commonly claimed deductions under section 80C

HOW THE NEW SYSTEM WILL HELP?

• Simplifying tax payment
• Reduce administrative cost
• Raises government’s revenue

Latest Burning Issues | Free PDF

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