Scenario A – What If a salaried employee not claiming any deduction. Some of the case studies at the different scenario’s for the salaried individual at different salary levels under the current tax regime and the new proposed tax regime. The answer to this question is, yes you can. Whether a taxpayer can pick and choose between the two tax regimes every financial year as per his/her convenience and income for that year. The question is whether the old tax regime is better than a new tax regime for the common man, any change in tax slab directly or indirectly impact the common man, so it is very important to understand the advantages and disadvantage of your choice. Income Tax Slabs for AY – (2021-22) FY – (2020-21)Īll Exemptions & Deduction u/s 80C, 80D are permitted as usualĪll Exemptions & Deduction u/s 80C, 80D Not permitted If you opt for New Tax regime LTA, HRA, conveyance, Other special allowances, Standard deduction, Interest on housing loan (Section 24), Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA) are not permitted.Dividend Distribution Tax (DDT) is withdrawn.This benefit is not permitted if you opt for the new tax regime. Under Section 80EEA additional period of 1 year is extended for taking benefit of an additional INR 1.5 Lakhs deduction. Here, only the disputed tax amount has to be paid. No penalty will be charged if taxpayers pay by March 31, 2020.
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