The year 2020 has brought a totally new experience to the humankind and made us realized our true status against the nature. All inventions and developments made by mankind are useless against the nature and its power. Everyone in the world has suffered, directly or indirectly, due to COVID -19 pandemic. Due to Lockdown and interruption in the economy cycle, the financial budget of the every household in the country especially the middle class has effected badly. Under this situation, majority taxpayers are struggling to manage their finances and taxes.
In order to provide significant relief to the individual taxpayers and to simplify the Income-tax law, the Finance Act 2020, has recently introduced new concessional personal tax regime, (herein after referred as ‘New tax regime’), by inserting Section 115BAC in the Income-tax Act,1961 (‘the Act’) with effect from Financial year 2020-21 (Assessment year 2021-22). Under the situation of Covid-19, with the intention to reduce the final tax liability, many taxpayers are trying to figure out what is the New tax regime, which regime should be opted, and which tax regime would be more beneficial to them, etc. In this article, we have tried to provide an understanding about New tax regime in details along with the advantages and disadvantages and it’s comparison with the existing tax regime.
Read on me: https://taxguru.in/income-tax/personal-concessional-tax-regime-smart-option.html
© 2018 CA Chandan Agarwal. All rights reserved.