25 Important Income Tax (Direct Tax) changes applicable from 1st April 2020 onwards (Financial Year 2020-21 – Assessment Year 2021-22)
1. New Tax Regime applicable to Individuals, HUFs:
A new concessional/ alternate tax regime under Section 115BAC of the Income Tax Act,1961 has been laid out wherein SIX different slab rates have been prescribed subject to some conditions. Some availments, benefits, deductions have to be forgone and only then this tax regime can be opted for.
2. Switch Over between Old Vs New Tax Regime:
The switch over between alternate tax regime is not possible for assessee’s having business or professional incomes. These assessee’s cannot switch over freely and are allowed only once and thereafter, they have to follow the opted out regime only.
However, other assessee’s with no business or professional income can freely switch over in the tax regimes every year.
The option for opting in the tax regime is available before filing the income tax return.
Read on me: https://taxguru.in/income-tax/important-income-tax-changes-applicable-01-04-2020.html
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