The following are the deductions and exemptions you cannot claim under the new tax system: The standard deduction, professional tax and entertainment allowance on salaries Leave Travel Allowance (LTA) House Rent Allowance (HRA) Minor child income allowance Helper allowance Children education allowance Other special allowances...
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October 1, 2021 admin
Financial & Accounting, Income Tax & Tax Return
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You can claim tax exemption for the following: Transport allowances in case of a specially-abled person. Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment. Any compensation received to meet the cost of travel on tour or transfer. Daily allowance...
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October 1, 2021 admin
Financial & Accounting, Income Tax & Tax Return
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Yes for salaried tax payer and No for non salaried tax payer. For Salaried Tax Payer A salaried taxpayer can choose the new tax regime at the beginning of FY 2020-21 and intimate their employer. The employee cannot change their choice anytime during the financial...
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October 1, 2021 admin
Financial & Accounting, Income Tax & Tax Return
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From a tax planning perspective, it is essential to choose the tax regime at the beginning of the financial year. A taxpayer must make a comparison of the income tax under the new tax regime with the existing regime. Once the taxpayer chooses the tax...
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October 1, 2021 admin
Financial & Accounting, Income Tax & Tax Return
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For an income of Rs 12,50,000, the new tax regime is marginally beneficial. However, if you claim further deductions for health insurance, investment in NPS, education loan and so on, the existing regime will be helpful in respect of tax savings. Income (Rs) Old...
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October 1, 2021 admin
Financial & Accounting, Income Tax & Tax Return
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For an income of Rs 10 lakh, the existing tax regime is beneficial. In case an individual claims lower deductions for tax savings, towards health insurance, investment in NPS and so on, the new regime will be more beneficial as against individuals who utilise the...
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October 1, 2021 admin
Financial & Accounting, Income Tax & Tax Return
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In case of a self-occupied property, you cannot claim a deduction on interest for a housing loan under the new tax regime. The deduction of Rs 2.00 lakh allowed in the existing system is not available in the new tax regime. Also, you cannot set-off...
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October 1, 2021 admin
Financial & Accounting, Income Tax & Tax Return
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In the case of a business income, an individual or HUF cannot claim set-off of the brought forward business loss or unabsorbed depreciation. The deductions not available under the new regime to the extent they relate to deductions/exemptions withdrawn.
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October 1, 2021 admin
Financial & Accounting, Income Tax & Tax Return
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The following deductions for business expenditure not allowed or removed under the new regime u/s 115BAC. Additional depreciation under section 32. Investment allowance under section 32AD Sector-specific business deductions under section 33AB and 33ABA Expenditure on scientific research under section 35 Capital expenditure under section...
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October 1, 2021 admin
Financial & Accounting, Income Tax & Tax Return
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The Budget 2020 introduces a new regime under section 115BAC giving an option to individuals and HUF taxpayers to pay income tax at lower rates. The new system is applicable for income earned from 1 April 2020 (FY 2020-21), which relates to AY 2021-22. Individuals and HUF...
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October 1, 2021 admin
Financial & Accounting, Income Tax & Tax Return
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