Income Tax Deductions Section 80C F.Y 2020-21 as per New Vs Old Tax Regime
Planning of Tax is an indispensable part of a tax. Whether you are a salaried person, a professional or a businessman, with the right tax plan you can save a certain amount of tax.
Indian Income Tax Act allows for some tax exemptions/tax exemptions which can be claimed to save tax. You can deduct the exemptions from your total income and your taxable income will be reduced by that amount.
A new income tax system was proposed in the 2020 budget. The 2020 budget has created a new controversy over which income tax slab rates are beneficial for taxpayers (New and Old Tax Regime U/s 115 BAC). A taxpayer can opt his choice through the Newly introduced Form 10-IE for this by deducting income tax.
Income tax exemption under the new tax regime for the financial year 2020-21
The person who is reluctant to pay tax under the new proposed personal income tax system will have to cancel all the tax breaks that you are claiming under the old tax regime.
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The most claimed exemptions will be under Section 80C.
Contribution of provident fund, life insurance premium, school tuition fee for children and 80 sex discounts filed for various specific investments like ELSS, NPS, PPF cannot be availed.
• House rent allowance
• Leave Travel Allowance
• Standard discount of Rs 50,000
• Exemption under Section 80 TTA (Exemption on Interest on Deposits in a
• Savings Account) and Exemption under Section 80 TTB (Exemption on Interest on Deposits to Senior Citizens)
• The interest paid on the housing loan is taken (Section 24).
• Loss of income from house property is not allowed under the new tax. However, you can still use it to cancel rental income from any out-of-property.
• The exemption claimed for medical insurance premium under Section 80D will also not be claimed.
• Loan tax deduction on interest paid on education loan is not claimable-Section 80E.
Tax breaks on grants will not be available to charities under Section 80G
Thus, all exemptions under section 80 C will not be claimed by those who pray for the new tax regime.
The above is part of a total of 70 exemptions and tax exemptions that will not be available in the new tax system. Income tax exemptions and exemptions approved under the new tax regime AIY 2021-22