"Vital Tips on Finance"- by CA Dilip Jhajaria

Hello Kolkata Financial Desk

-Dilip Jhajaria

FCA, FCS, GC (B&F-Sydney)

Chartered Accountant 

President- Lions Club of Calcutta (17-18)

Chairman- Lion Bimal Poddar Eye Hospital

Bharat Gaurav Award winner along with other awards.

Here are some vital tips/ awareness/ knowledge on financial terms, financial rules which will help you understand these better in simple words.
Today I will discuss the new Income Tax rule for Financial year 2020-21 w.e.f 1/4/20.
This gives an individual taxpayer the option to either continue with the existing tax regime (with tax-exemptions and deductions) or opt for new tax regime (without 70 tax-exemptions and deductions).
  Once you chose a option you can not change it afterwards so its important to choose the right one which suites u most. The old Tax Slab has 250000/ tax free and 5% till 500000. From 500000-100000/- its 20% and 1000000/- Exceeding is 30%. New Tax Regime brings in many slabs but
removes all deduction. Exempted till 2.50L Thereafter its 5 % tax from income Rs 2.50 L to 5.00 Lacs. From 5.00 to 7.50 Lacs Its 10%, 15% From 7.50 to 10 Lacs, and Max Tax is 30% from 15 Lacs and above.
   However you have no Exemptions on Your investment under various sections which reduces your tax liability. The old system is beneficial. Hence the crux is that upto an income of 16 lacs and claiming deductions of 310000/- there is no need to change.  Older system is beneficial if u claim more exemptions and if low income than 16 lacs. But U have to judge after consulting your tax advisor and depends on case to case.

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